Auto Sales, Education Stocks Surge in India

123jump.com Staff
01 Jul, 2009
New York City

Stocks in Mumbai closed higher led by a surge in education and auto related stocks. Tata Motors and Mahindra & Mahindra sales surged 19% and Maruti Suzuki sales soared 23%. Trade deficit in the first two months to May declined 50% in the current fiscal year.

[R]5:00 PM Mumbai, 7:30 AM New York – Stocks in Mumbai closed higher led by a surge in education and auto related stocks. Tata Motors and Mahindra & Mahindra sales surged 19% and Maruti Suzuki sales soared 23%. Trade deficit in the first two months to May declined 50% in the current fiscal year.[/R]

Stocks gained after the release of auto sales data. Companies rush to raise capital from retail and institutional investors after the market gains in the last fifteen weeks.

The Sensex index in India increased 151.63 or 1.05% to 14,645.47 and the CNX Nifty index added 1.2% to 4,340.90.

Trading turnover on the BSE decreased to 5,753 crore rupees from 6,784 crore rupees and on the exchange 1,341 decreased, 1,292 increased and 73 stocks were unchanged.

Of the 30 stocks in the Sensex index, 26 increased and 4 decreased.

Companies are expected raise from qualified investors and retail investors as much as $10 billion. The large issues from real estate companies, infrastructure developers and industrial and power generating companies are draining liquidity.

The Purchasing Managers’ index decreased to 55.34 in June from 55.7 in May. The number above 50 still shows that the economic activities are expanding after contracting in December. The new orders have increased every month since the end of last year.

Exports and Imports in May Fall

Exports from India decreased 29.2% in May from a year ago to $11.01 billion and imports declined 37% to $16.2 billion. The trade deficit in the month fell 50% to $10.20 billion from $19.88 billion.

Gainers & Losers

Maruti Suzuki auto sales in June surged 23% in June. Sales at Hero Honda Motors increased 24% and at Tata Motors and Mahindra & Mahindra increased 19%.

Maruti increased 0.4% to 1,070 rupees, Tata Motors added 3.2% to 299.30 rupees and Mahindra & Mahindra jumped 3.2% to 714.35 rupees. TVS Motor Company added 3% to 46.45 rupees after it said unit sales increased to 6% in June.

Unitech confirmed that the company is working to raise 2,780 crore rupees ($580 million) from international investors after GMR Infrastructure canceled its offering.

Housing Development & Infrastructure has completed its offering of $350 million, Sobha Developers $110 million and Hindustan Construction Company $100 million from foreign institutional investors.

DLF led the gainers in the Sensex index with a rise of 5% to 326 rupees.

Nagarjuna Construction Company increased 2.1% to after it received orders of 797 crore rupees. GMR infrastructure fell 1.1%.

Areva T&D India added 7.9% to after its parent company in France approved the sale of its power grid unit and planned to raise capital to fund new nuclear power reactors.

Education linked stocks surged on the speculation that the forthcoming budget will provide incentives to the sector.

The most active stock on the BSE, Educomp surged 12% to 4,239.755 crore rupees, Navneet Publications added 9% to 82.80 rupees, NIIT Limited increased 14.6% to 70.45 rupees, Aptech Ltd surged 10.4% to 178.10 rupees, Everonn Systems surged 9% to 449.65 rupees and Jetking Infotrain Ltd surges 18% to 199.10 rupees.

Reliance Industries added 1.4% to 2,051 rupees on a speculation that the company may appeal to Supreme Court to reverse the latest ruling on the price and amount of natural gas sale to Reliance Natural Resources.

The government controlled oil marketing companies surged after the oil import bill declined to $4.1 billion in May. The sixth monthly price decline in a row also helped the imports in the month to fall.

Indian Oil Corp increased 1.9% to Bharat Petroleum Corp increased 2% to and Hindustan Petroleum added.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 18.51 or 0.19% to 9,939.93, CSI 300 index in China higher 71.43 or 2.26% to 3,237.90.ASX 200 index in Australia decreased 80.90 or 2.05% to 3,874.00.The KL Composite index in Malaysia closed higher 4.16 or 0.39% to 1,079.40.The Markets of Hong Kong were closed today.

The Kospi Index in South Korea increased 21.59 or 1.55% to close at 1,411.66.JSE Index in Indonesia increased 33.10 or 1.63% to 2,059.88. The Sensex index in India increased 151.63 or 1.05% to 14,645.47. The Markets of Thailand were closed today.