Sensex Index Falls, January Trade Deficit

123jump.com Staff
02 Mar, 2009
New York City

Exports from India decline 15.9% to $12.38 billion in January and trade deficit in the month persisted at elevated level in the month. For the ten months deficit surged 50% despite a fall in oil prices. Sensex Index dropped 3.2%. National elections are announced to begin on April 16.

[R]10:00AM New York, 7:30 PM Mumbai - Exports from India decline 15.9% to $12.38 billion in January and trade deficit in the month persisted at elevated level in the month. For the ten months deficit surged 50% despite a fall in oil prices.[/R]

The benchmark stock index fell in India after exports fell 15.9% in January as exports of diamond, textiles and software services.

The chief election commissioner N Gopalaswami announced the Lok Sabha elections will begin on April 16, 2009 and the fifteenth Lok sabha will be constituted by June 2, 2009. The elections will be held in phases between April-May.

In Mumbai, the BSE 30-share Sensex Index dropped 3.2% or 284.53 to 8,607.08, and S&P CNX Nifty declined 3.2% or 89.05 to 2,674.60.

Of the BSE stocks, 745 increased, 1,659 declined, and 69 were unchanged.

Trading Statistics

Daily turnover on the BSE plunged to 2,182 crore rupees from 3,052.95 crore rupees on Friday last week.

January Exports Decline 15.9%

Commerce department reported exports declined 15.9% to $12.38 billion in January from $14.72 billion in the same period a year earlier, while imports fell 18.2% to $18.45 in the review period as the oil import bill dropped.

Oil imports in the period fell 47.5% to $4.5 billion from a year earlier, while non-oil imports declined 0.5%.

Exports fell most for textiles, handicrafts, gems & jewelry, leather, plastics, metals and rice.

Cumulative exports in the April-January period rose 13.2% to $144.3 billion. Also trade deficit in the April-January period was $99.1 billion compared to $66.83 billion in the same period a year ago.

Purchasing Managers’ Index Rises to 47 in February

The ABN AMRO Bank purchasing managers'' index (PMI), which gauges 500 companies, increased to 47 in February from 46.7 the previous month.

A reading above 50 shows economic expansion while a reading below 50 showed contraction.

Gainers & Losers

Reliance Industries slipped 3.2% to 1,225.15 rupees on reports the company has set the swap ratio for merger of Reliance Petroleum in favor of Reliance Petroleum. Under the deal, Reliance Industries will issue one share for every sixteen held in Reliance Petroleum.

ONGC and Cairn India declined 3.92% after oil prices fell to $43.96 a barrel.

Financial stocks shed. ICICI Bank plunged 7.3%, State Bank of India declined 3.1% and HDFC Bank slipped 4.4%.

Dewan Housing Finance Corporation rose 1.3% after the company said its board will meet on March 6 to consider raising funds through rights issue.

Tata Steel tumbled 7.5% to 159.35 rupees after third quarter profit slipped 44.2% to 732.21 crore rupees as total income jumped 3.6% to 33,222.59 crore rupees from the comparable year ago period.

Auto stocks fell. Maruti Suzuki India declined 0.3% to 675.55 rupees after sales increased 24.1% to 79,190 units in February 2009 from a year earlier.

TVS Motor Company rose 2.6% after its two wheeler sales rose 13% to 1,07,301 units in February 2009 over February 2008 and Honda Motors slipped 3.4% as sales increased 24% year-on-year in February.

Bajaj Auto dropped 4.9% after total vehicle sales plunged 16% to 1,53,782 units in February 2009 over the same period a year ago.

Mahindra & Mahindra rose 2.6% to 317.90 rupees and Tata Motors fell 0.2% to 149.15 rupees.

Apollo Tyres gained 23.8% after the company said its board will meet on March 19 to consider a share buyback.

IT stocks fell despite the rupee weakening to 51.92 against the dollar from 51.10 on Friday last week. Wipro plunged 2.2%, Infosys Technologies dropped 1% and TCS fell 4.4%.