India Exports Drop Slows; Bajaj Auto Surges

Mayank Mehta
03 Aug, 2009
New York City

The Sensex index gained 1.6% and closed at a record high in fourteen months. Bajaj Auto soars after it increased motorcycle production by 25%. Bharti Airtel and MTN extended merger talks. Maruti Suzuki jumped after July auto sales surged 33%. Exports from India drop 28%.

[R]6:00 PM Mumbai, 8:30 AM New York – The Sensex index gained 1.6% and closed at a record high in fourteen months. Bajaj Auto surged 7.5% after it increased motorcycle production by 25%. Bharti Airtel and MTN extended merger talks. Maruti Suzuki jumped 3.6% after July auto sales surged 33%. Adani Power completed largest public offering in eighteen months.[/R]

Global demand for India’s products is still weak according to the latest data from the government. Exports declined 27.7% from a year ago to $112.8 billion in June after falling 29.2% in May and 33.2% in March.

The pace of decline is slowing, but India is unlikely to reach its fiscal 2010 target of $200 billion. In the fiscal first quarter ending in June, the exports dropped 31.3% to $35.4 billion.

Imports in the month declined 29.2% to $19 billion and in the quarter fell 36.5% to $50.9 billion. Oil imports in the month fell 50% to $5 billion and dropped 57% to $29.5 billion in the quarter.

Adani Power Ltd completed its public offering that sold 301.6 million shares at 100 rupees each. The offering raised 3,200 crore rupees

The Sensex index in India increased 253.92 or 1.62% to 15,924.23 and CNX Nifty index rose 74.95 or 1.62 % to 4,711.40. Among the Sensex 30 stocks, 26 rose and rest declined.

On BSE trading, 1,755 stocks advanced, 951 declined and 71 were unchanged.

Gainers & Losers

Bajaj Auto soared 7.54% to Rs 1,316.95 as it plans to raise its domestic motorcycle production by 25% in August 2009 due to strong demand.

Bombay Dyeing & Manufacturing Company Limited decreased 2.2% or Rs.8.00 to Rs.344.90 after the textile Industry said first quarter sales rose 9.2% to Rs.344 crore from Rs.315 crore a year ago. Net loss for the quarter was Rs.19.7 crore or Rs.5.10 per diluted share compared to net profit of Rs.48.3 crore or Rs.12.52 per share a year ago.

Bombay Rayon Fashions Limited increased 0.3% or Rs.0.65 to Rs.174.85 an integrated textile group said first quarter sales rose 22.3% to Rs.336.4 crore from Rs.275 crore a year ago. Net profit for the quarter rose 7% to Rs.37.3 crore or Rs.4.50 per diluted share compared to net profit of Rs.34.9 crore or Rs.5.46 per share a year ago.

Divi''s Laboratories Ltd declined 5.0% or Rs.27.25 to Rs.509.05 after the manufacturer of active pharmaceutical ingredients and intermediates said first quarter sales fell 22% to Rs.205.83 crore from Rs.263.58 crore a year ago. Net profit for the quarter fell 95.5% to Rs.4.29 crore or Rs.0.65 per diluted share compared to net profit of Rs.94.3 crore or Rs.14.43 per share a year ago.

Entertainment Network (India) Limited dropped 2.0% or Rs.4.10 to Rs.192.60 an entertainment and media company said first quarter revenues fell 18% to Rs.87.3 crore from Rs.107.10 crore a year ago. Net loss for the quarter was Rs.19.41 crore compared to net profit of Rs.7.99 crore a year ago.

Excel Infoways jumped to Rs 98.35, a premium of 15.71% from the initial public offer price of Rs 85.

GMR Infrastructure Limited lost 0.4% or Rs.0.60 to Rs.142.00 after the infrastructure company said first quarter revenues rose 33% to Rs.1,177.52 crore from Rs.885.47 crore a year ago. Net profit for the quarter fell 70% to Rs.22.5 crore or Rs.0.12 per diluted share compared to net profit of Rs.74.9 crore or Rs.0.41 per share a year ago.

Hero Honda Motors rose 1.03% to Rs 1622 after two-wheeler sales rose 30.4% to 3.66 lakh units in July 2009 over July 2008.

ICSA (India) declined 2.4% to Rs 178.35 after net profit slipped 0.11% to Rs 34.02 crore in first quarter June 2009 over fourth quarter March 2009.

JK Cements gained 2.50% to Rs 123 after net profit jumped 94.4% to Rs 70.22 crore in first quarter June 2009 over first quarter June 2008.

Mahanagar Telephone Nigam Limited fell 3.3% or Rs.3.60 to Rs.99.10 after first quarter revenues fell 14.8% to Rs.955.47 crore from Rs.1,121.65 crore a year ago. Net loss for the quarter was Rs.46.84 crore compared to net profit of Rs.115.19 crore a year ago.

Man Industries (India) Limited slid 6.1% or Rs.2.95 to Rs.45.35 after the manufacturer and exporter of large diameter carbon steel line pipes said first quarter total income rose 1.6% to Rs.321.9 crore from Rs.316.9 crore a year ago. Net profit for the quarter fell 80% to Rs.2.9 crore compared to net profit of Rs.14.5 crore a year ago.

Maruti Suzuki (India) spurted 3.76% to Rs 1,466.45 after total vehicle sales rose 33.4% to 78,074 units in July from a year ago month.

Page Industries Limited added 0.1% or Rs.1.05 to Rs.601.00 after the manufacturer of garments said first quarter revenues rose 20.5% to Rs.79.4 crore from Rs.65.9 crore a year ago. Net profit for the quarter rose 16% to Rs.10.1 crore compared to net profit of Rs.8.7 crore a year ago.

Sanghi Industries surged 6.40% to Rs 26.60 after net profit jumped 157.3% to Rs 18.94 crore in first quarter June 2009 over first quarter June 2008.

Simplex Infrastructures Limited slipped 0.08% or Rs.0.30 to Rs.379.80 after the service provider of infrastructure and construction said first quarter sales rose 11.1% to Rs.1,127 crore from Rs.1,018 crore a year ago. Net profit for the quarter was Rs.28.4 crore.

Suzlon Energy Limited fell 4.4% or Rs.4.40 to Rs.95.35 after the wind turbine maker said first quarter total income rose 33.3% to Rs.4,171.35 crore from Rs.3,128.97 crore a year ago. Net loss for the quarter was Rs.453 crore or Rs.3.02 per diluted share compared to net profit of Rs.9.30 crore or Rs.0.06 per share a year ago.

Unitech Limited rose 4.4% or Rs.4.05 to Rs.94.10 after the real estate company said first quarter revenues fell 50% to Rs.514.9 crore from Rs.1,031.6 crore a year ago. Net profit for the quarter fell 62.7% to Rs.157.7 crore compared to net profit of Rs.423.31 crore a year ago.

Dhanalakshmi Bank declined 1.49% to Rs 122.60 after the bank''s net non-performing assets surged 55.66% to Rs 33.70 crore in first quarter June 2009 over first quarter June 2008.

HDFC Bank sank 0.3% or Rs.5.65 to Rs.1,493.45. ICICI Bank climbed 1.8% or Rs.14.35 to Rs.773.40. State Bank of India surged 1.7% or Rs.32.50 to Rs.1,846.50.