Indian Stocks Climb on Economic Expansion

Mukesh Buch
29 May, 2009
New York City

In Mumbai the benchmark index closed up 2.3% after the release of fourth quarter economic data. Real estate developers, banks and oil and energy companies traded higher. The benchmark indexes have rebounded 52% from their lows ten weeks ago.

[R]6:00 PM Mumbai, 8:30 AM New York – In Mumbai the benchmark index closed up 2.3% after the release of fourth quarter economic data. Real estate developers, banks and oil and energy companies traded higher. The benchmark indexes have rebounded nearly 50% from their lows ten weeks ago.[/R]

Stocks in Mumbai advanced after the release of fourth quarter GDP data. The GDP expanded 5.8% in quarter matching the revised growth rate for the third quarter. The third quarter rate was increased to 5.8% from 5.3%.

For the year the economy expanded at 6.7%, slower than 9% rise in the fiscal year ending in March 2008.

The 10-year bond yield hovered around 6.7% as the government is preparing to step up its borrowing in the first half of the current fiscal year.

The Sensex index in India increased 329.24 or 2.30% closed to 14,625.25 and CNX Nifty increased 109 or 2.5% to 4,446.10.

Of the 30 stocks in the Sense, 25 increased and 5 declined.

Trading turnover on the BSE increased to 8,384 crore rupees from 7,032 crore rupees and on the NSE increased to 27,356 crore rupees from 25,664 crore rupees.

Of the stocks traded on the BSE, 2,124 increased, 648 declined and 64 were unchanged.

Gainers & Losers

Indian Oil Corporation surged 5.9% after it reported net profit of 6,620 crore rupees compared to a loss of 414 crore rupees.

Reliance Industries increased 1.7% to 2,257 rupees and ONGC increased 3.5% to 1,169 rupees after the crude oil price in international markets surged to $64.75 a barrel.

State Bank of India increased 2.5% to 1,870 rupees, ICICI Bank gained 1.5% to 740.70 rupees and Canara Bank declined 1.1% to 283.95 rupees.

Indiabulls Real Estate Ltd surged 9.1% to 246.15 rupees after the stock was included in the mid-cap MSCI global index.

DLF Limited surged 8.4% to 403.30 rupees on rumors that the founders of the companies may sell additional 5% stake to investors after the completion of recent offering. Unitech Ltd added 4.6% to 79.75 rupees.

A sharp rise in shipping freight rate index, Baltic Dry index of 4.2% lifted the stocks of shipping companies.

The Shipping Corporation of India Ltd increased 2.9% to 136.60 rupees, Great Eastern Shipping Company increased 1.1% to 283.20 and Varun Shipping Company edged up 0.4% to 62.70 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 71.11 or 0.75% to 9,522.50, Hang Seng index in Hong Kong increased 285.73 or 1.60% closed to 18,171.00, ASX 200 index in Australia increased 62.40 or 1.66% closed to 3,818.10. The KL Composite index in Malaysia higher 2.87 or 0.28% closed to 1,044.11.The Markets of China were closed today.

The Kospi Index in South Korea increased 3.72 or 0.27% to close at 1,395.89. SET index in Thailand closed higher 4.98 or 0.90% to 560.41 and JSE Index in Indonesia increased 13.96 or 0.73% closed to 1,916.83. The Sensex index in India increased 329.24 or 2.30% closed to 14,625.25.