Manufacturing Grows in India; Bond Yields Rise

123jump.com Staff
12 Jun, 2009
New York City

In India, industrial production rose in April on a rise in manufacturing and electricity output. Yield on 10-year bond increased to 6.94% and State Bank of India estimated 4% of loan portfolio in restructuring.

[R]6:00 PM Mumbai, 8:30 AM New York – In India, industrial production rose in April on a rise in manufacturing and electricity output. Yield on 10-year bond increased to 6.94% and State Bank of India estimated 4% of loan portfolio in restructuring.[/R]

Stocks in Mumbai trading fell on Friday after rallying for thirteen weeks as bond yields increased, industrial production rose and State Bank of India reported sharply higher loans in restructuring.

For the week the Sensex index increased 0.9% and the CNX Nifty index declined 0.07%. The Sensex closed higher for the fourteenth week in a row.

Bond yields are on the rise as the government is expected to increase its borrowing. The yield on 10-year bond increased to 6.94% from 6.89%.

Industrial production increased 1.4% in April from the revised decline of 0.75% in March.

Manufacturing which accounts for 76% of the output increased 0.7% in the month after declining 1.6% in March, electricity output increased 7.1% and mining production increased 3.8%.

The Sensex index in India decreased 173.53 or 1.13% closed to 15,237.94 and CNX Nifty index decreased 54.30 or 1.2% to 4,583.40.

Of the stocks in the Sensex, 26 decreased and 4 increased.

Daily trading turnover on the BSE increased to 7,868 crore from 7,628.57 crore rupees and on the NSE turnover decreased to 23,706 crore rupees from 23,893 crore rupees.

Of the shares traded on the BSE, 707 gained, 2,026 declined and 45 were unchanged.

Gainers & Losers

Sesa Goa increased 5.6% to 202.90 rupees and after the close the company announced that it has acquired mining assets of Dempo Group for 1,750 crore rupees.

Tata Steel Ltd increased 1.2% to 457.75 rupees and Sterlite Industries increased 2.4% to 720 rupees.

State Bank of India decreased 3.5% to 1,637 rupees after it said that total loans that are in restructuring including the applications for restructuring is 4% of total loan portfolio.

Software exporters declined. Infosys fell 1.4% to 1,727.95 rupees, TCS declined 1.4% to 764.45 rupees and Wipro decreased 3.2% to 409.95 rupees.

Bharti Airtel decreased 3.1% to 828.15 rupees after Cellular Operators Association of India reported monthly subscriber growth of 2.8% in May.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 154.49 or 1.55% to 10,135.82, Hang Seng index in Hong Kong increased 98.65 or 0.52% closed to 18,889.68, CSI 300 index in China lower 55.34 or 1.87% closed to 2,906.29. ASX 200 index in Australia increased 15.00 or 0.37 % closed to 4,062.20. The KL Composite index in Malaysia higher 1.19 or 0.11% closed to 1,090.15.

The Kospi Index in South Korea increased 9.20 or 0.65% to close at 1,428.59.SET index in Thailand closed higher 1.48 or 0.24% to 628.55 and JSE Index in Indonesia increased 1.36 or 0.06% closed to 2,090.94. The Sensex index in India decreased 173.53 or 1.13% closed to 15,237.94.