Industrial Output Surges in India

Mayank Mehta
12 Aug, 2009
New York City

Output at factories, mines and electric utilities surged 7.8% in June. Swine flu worries forces Mumbai to close schools and malls. Generic drug makers surged for the second day in a row. Tata Steel rolls back recent price increase in select steel categories.

[R]6:00 PM Mumbai, 8:30 AM New York – Output at factories, mines and electric utilities surged 7.8% in June. Swine flu worries forces Mumbai to close schools and malls. Generic drug makers surged for the second day in a row. Tata Steel rolls back recent price increase in select steel categories.[/R]

Swine flu related stocks were among the most active for the second day after Maharashtra State orders closure of movie theaters and malls. The schools will be shut for a week in Mumbai beginning tomorrow and the local government has expanded the treatment centers to 18 from 2.

Output at mines, factories and utilities increased 7.8% in June from a year ago after growing at revised 2.2% in May. The manufacturing increased 7.3%, mining output jumped 15.4% and electricity production surged 8%.

Consumer durables production including cars, air conditioners and refrigerators soared 15.5% from a year ago.

The Sensex index in India decreased 54.43 or 0.36% to 15,020.16 and CNX Nifty index lost 6.15 or 0.14% to 4,465.20. Among the Sensex 30 stocks, 18 fell and 12 rose.

On BSE trading, 1,208 stocks advanced, 1,367 declined and 99 were unchanged.

Gainers & Losers

Generic drug makers surged after Mumbai and Pune closed malls and schools. Ranbaxy Laboratories, Ltd surged 4.7% to Rs 289 and Cipla increased 1.5% to Rs 284.90.

Bharti Airtel Limited gained 5.1% or Rs. 19.85 to Rs.402.35 after the telecom services provider and Royal Government of Bhutan agreed to build a fiber cable network.

Elantas Beck India Ltd jumped 10% to Rs.397.80 after the chemical manufacturer will be taken private by its German parent Elantas GmbH.

IndusInd Bank Ltd gained 2.4% or Rs.2.35 to Rs.90.00 after the banking company said the company is in the process of raising $100 million through qualified institutional placement.

Jagran Prakashan Limited the media and communications company surged 3.1% or Rs.2.80 to Rs.92.75.

Jammu and Kashmir Bank Limited fell 1.4% or Rs.6.85 to Rs.468.20.

Kinetic Engineering Ltd an auto component manufacturer rose 4.9% or Rs.2.65 to Rs.56.45.

Movie theaters stocks declined for the second day in a row. Adlabs Films Ltd decreased 0.2% and PVR Limited closed down 6.4% to Rs 111.

Pantaloon Retail (India) Limited advanced 12.8% or Rs.34.20 to Rs.303.60.

Reliance Communications Limited rose 1.1% or Rs.2.90 to Rs.256.60 after the second largest mobile services provider has partnered with the US-based Kodiak Networks for a nationwide commercial roll-out of mobile conferencing service.

Sun Pharmaceutical Industries Limited added 3.0% or Rs.37.30 to Rs.1,243.00 after the company agreed to a settlement with the U.S. based MedImmune for the generic version of the drug Ethyol.

Tata Communications Limited lost 2.1% or Rs.10.10 to Rs.464.50 after its American depository receipt slumped 5.5% to $18.99 on Tuesday.

Tata Steel Limited declined 5.0% or Rs.23.55 to Rs.439.50 after the diversified steel producer reduced prices of long steel products by up to Rs.1,500 a ton.

Shares of India''s biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation dropped 2.3% to Rs 1,124. Cairn India fell 2.6% to Rs 237.70.

Steel and base metals producers declined after weak commodities prices.

Steel Authority of India and Hindustan Zinc fell 1.1%, Sterlite Industries and Tata Steel declined more than 3%, JSW Steel dropped 2.1% and Hindalco Industries edged 1.6% lower.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 150.46 or 1.42% to 10,435.00, Hang Seng index in Hong Kong decreased 638.97 or 3.03% to 20,435.24 and CSI 300 index in China lower 158.98 or 4.47% to 3,397.40. ASX 200 index in Australia increased 11.10 or 0.26% to 4,343.10. The FTSE Bursa KL Composite index in Malaysia closed lower 5.74 or 0.48% to 1,180.54.

The Kospi Index in South Korea decreased 13.86 or 0.88% to close at 1,565.35 JSE Index in Indonesia decreased 51.92 or 2.16% to 2,347.36. The Sensex index in India decreased 54.43 or 0.36% to 15,020.16. The Thailand Market was closed today.