Export Orders Drive India Stocks

Mayank Mehta
26 Aug, 2009
New York City

Stocks in Mumbai edged higher as companies report new export orders. IT and auto sector stocks edged higher. Large order fuels Aban Offshore. Tech Mahindra in demand after new order win. NTPC gains on a likely government support in the natural gas dispute with Reliance Industries.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai edged higher as companies report new export orders. IT and auto sector stocks edged higher. Large order fuels Aban Offshore. Tech Mahindra in demand after new order win. NTPC gains on a likely government support in the natural gas dispute with Reliance Industries.[/R]

The Sensex index in India increased 81.38 or 0.5% to 15,769.85 and CNX Nifty index rose 21.50 or 0.4% to 4,680.85. Among the Sensex 30 stocks, 18 advanced and 12 fell.

On BSE trading, 1,938 stocks advanced, 884 declined and 70 were unchanged.

India is not considering raising retail fuel prices despite an uptrend in global crude oil prices, the oil secretary said on Wednesday.

Separately, the government will unveil its foreign trade policy on Thursday that will eliminate or refund taxes and offer cheaper bank credit to exporters and encourage companies to explore markets beyond the U.S. and European countries.

The government today announced higher subsidy on different crops seeds to Rs. 288 crore to mitigate the impact of drought to farmers.

Both Mukherjee and C Rangarajan, chief of the Prime Minister''s Economic Advisory Council, estimated the current fiscal year growth between 6% and 6.5% after taking into account the drought impact.

Gainers & Losers

Aban Offshore Ltd increased 21.1% or Rs.256.55 to Rs.1,467.00 after the provider of oil field services for offshore exploration said it expects revenue of $695 million from two contracts it signed for deploying four rigs.

Ansal Properties and Infrastructure Ltd rose 13.2% or Rs.9.40 to Rs.80.25 after the real estate developer is expected to raise funds on August 28, 2009.

Gayatri Projects Limited surged 5.0% or Rs.13.20 to Rs.277.45 after the construction company allots preferential shares to Reliance Mutual Fund.

Hanung Toys & Textiles Ltd gained 4.9% or Rs.3.70 to Rs.78.35 after the manufacturer and exporter of stuff toys and home furnishing issues securities up to $50 million.

HCL Technologies Limited surged 0.2% or Rs.0.70 to Rs.307.70 after the providing software-led IT solutions the net profit has surged 25.5% to Rs 1,319.63 crore in the year ended June, 2009 from Rs 1,051.41 crore in the corresponding period a year ago. Total income has increased 35% to Rs 10,491.61 crore from Rs 7,755.50 crore.

Hindustan Oil Exploration Company Limited gained 5.0% or Rs.16.15 to Rs.339.45 after the company expects to PY-3 production to re-commence in September 2009.

ICICI Bank Limited rose 0.2% or Rs.1.75 to Rs.761.15 the bank has asked the government to exclude the ADR and GDR securities allocation to determine if the bank is controlled by domestic or foreign investors.

Kavveri Telecom Products Limited advanced 4.9% or Rs.2.60 to Rs.55.15 after the company said Kaweri telecom infrastructure Ltd announces agreement for Inbuilding wireless solutions.

Kale Consultants Limited the solutions provider to the global airline, logistics and travel industry climbed 4.9% or Rs.2.55 to Rs.54.15.

Madras Cements Ltd rose 1.4% or Rs.1.55 to Rs.107.65.

Motherson Sumi Systems Limited soared 11.2% or Rs.9.50 to Rs.94.00 after the company said on Wednesday its unit won orders worth Rs.3,490 crore from major European carmakers including Volkswagen and BMW. The contract for six years begins the delivery of rear view mirrors from 2011.

NTPC Limited climbed 0.4% or Rs.0.90 to Rs.211.30 after the generation and sale of bulk power to state electricity boards signed agreement with Chhattisgarh State Power Distribution Company Limited for supply of power from its Korba Super Thermal Power Station stage III with a capacity of 500 MW.

The Phoenix Mills Limited the property and related services and textile/cloth trading rose 10.1% or Rs.14.70 to Rs.159.45.

Reliance Communications Limited rose 1.8% or Rs.4.75 to Rs.267.00.

Su-Raj Diamonds and Jewellery Limited rose 13.9% or Rs.5.85 to Rs.47.75 after the company is looking to issue preference shares on August 26, 2009.

Tech Mahindra Limited added 1.2% or Rs.11.20 to Rs.903.00 after the IT services provider has been reported to receive an order for $500 million contract.

Thermax Limited added 1.7% or Rs.7.55 to Rs.432.55 after the environment engineering company and SPX Corporation announces joint venture agreement.

Tilaknagar Industries Limited surged 3.4% or Rs.7.30 to Rs.217.00 after the alcoholic beverage company recommended 2 for 1 bonus issue.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 142.35 or 1.36% to 10,639.71, Hang Seng index in Hong Kong increased 21.08 or 0.10% to 20,456.32 and CSI 300 index in China higher 62.56 or 2.01% to 3,172.39. ASX 200 index in Australia increased 48.70 or 1.11% to 4,454.50. The FTSE Bursa KL Composite index in Malaysia closed higher 1.47 or 0.13% to 1,172.56.

The Kospi Index in South Korea increased 12.74 or 0.80% to close at 1,614.12. SET index in Thailand closed higher 2.82 or 0.43% to 658.28 and JSE Index in Indonesia decreased 0.43 or 0.02% to 2,380.09. The Sensex index in India increased 81.38 or 0.52% to 15,769.85.