World Bank Lifts India Growth Estimate

Darlington Musarurwa
23 Jun, 2009
New York City

Stocks in Mumbai trading fell in the morning as Asian markets declined. In the late afternoon market indexes recovered to close nearly unchanged. Satyam Computer appointed new chief. The government reported fiscal deficit in April was 16.3% of the full-year estimate.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading fell in the morning as Asian markets declined. In the late afternoon market indexes recovered to close nearly unchanged. Satyam Computer appointed new chief. The government reported fiscal deficit in April was 16.3% of the full-year estimate.[/R]

Stocks in Mumbai trading could not shrug off the global markers weakness after the World Bank increased its forecast of global economic recession.

The World Bank revised its global economic contraction estimate to 2.9% from 1.7% but increased the economic growth forecast for India to 5.1% from 4%. The Washington based bank also increased its 2010 growth estimate for India to 8%, higher than 7.7% forecast for China.

The government reported today fiscal deficit in April increased to 54,158 crore rupees ($11 billion) or 16.3% of full-year estimate. Tax receipts were at 7,462 crore rupees and expenditure at 66, 217 billion rupees.

Foreign funds sold shares worth 1,908.90 crore rupees in six trading sessions from June 15, 2009 to June 22, 2009, while inflow in June 2009 increased to 4,223.40 crore rupees.

The Sensex dropped for the ninth trading session.

In Mumbai, the BSE 30-share Sensex Index fell 0.02% or 2.21 to 14,324.01 and the CNX Nifty rose 0.3% or 11.75 to 4,247.

Of the stocks traded on the BSE, 1,118 gained, 1,454 dropped, and 69 were unchanged.

Daily turnover on the BSE increased to 5,664 crore rupees from 5,143.85 crore rupees yesterday.

Gainers & Losers

Great Offshore Ltd surged 7.9% to 413 rupees, ABG Shipyard added 1.8% to 213.15 rupees and Bharti Shipyard decreased 5% to 162.50 rupees.

Tata Consultancy Services Limited decreased 1% to 366.20 rupees after it reported advance tax payment declined 33% to 50 crore rupees.

Wipro Limited decreased 0.5% to 376.60 rupees and Infosys edged lower 1.1% to 1,746 rupees.

Satyam Computer Services Limited declined 5% to 73.20 rupees after it appointed new chief executive Prakash Gurnani. Tech Mahindra added 1% to 747.45 rupees.

Sterlite Industries decreased 2.8% to 577.20 after copper prices declined in international markets.

UltraTech Cement Ltd added 0.2% to 658.10 and Madras Cement increased 0.7% to 100.45 rupees.

Larsen & Toubro decreased 1.6% to 1,485 rupees and Reliance Infrastructure added 1.3% to 1,223 rupees.

Reliance Industries increased 3.2% to 2,016 rupees after NTPC chairman said that it is prepared to pay market price for natural gas.

Bharti Airtel declined 0.8% to 786.35 rupees, Idea Cellular fell 0.4% to 78.60 rupees and Reliance Communications edged 0.1% lower to 296.10 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 276.66 or 2.82% to 9,549.61, Hang Seng index in Hong Kong decreased 521.18 or 2.89% to 17,538.37, CSI 300 index in China higher 1.33 or 0.04% to 3,083.90. ASX 200 index in Australia decreased 121.30 or 3.10% to 3,796.90. The KL Composite index in Malaysia closed lower 1.49 or 0.14% to 1,044.48.

The Kospi Index in South Korea decreased 39.17 or 2.80% to close at 1,360.54.SET index in Thailand closed lower 12.44 or 2.14% to 569.85 and JSE Index in Indonesia decreased 60.64 or 3.07% to 1,914.38. The Sensex index in India decreased 2.21 or 0.02% to 14,324.01.