India Stocks Reverse Early Gains; NHPC IPO

Mayank Mehta
01 Sep, 2009
New York City

In Mumbai trading stocks fell tracking losses in rupee and selloff from international markets. NHPC on its first day of trading surged as much as 16%. Reliance Communications prepaid nearly $1 billion in debt to lower interest costs. Auto and motorcycle sales in August surged. Exports drop in July.

[R]6:00 PM Mumbai, 8:30 AM New York – In Mumbai trading stocks fell tracking losses in rupee and selloff from international markets. NHPC on its first day of trading surged as much as 16%. Reliance Communications prepaid nearly $1 billion in debt to lower interest costs. Auto and motorcycle sales in August surged.[/R]

Stocks in Mumbai trading reversed their earlier gains to close lower at close on a weakness in Asia trading and weak opening in European markets.

The Sensex index in India decreased 115.45 or 0.7% to 15,551.19 and CNX Nifty index fell 36.75 or 0.7% to 4,625.35. Among the Sensex 30 stocks, 23 fell and 7 rose.

On BSE trading, 1,656 stocks declined, 1,144 rose and 62 were unchanged.

July exports Fall at a Slower Pace

July exports declined 28.4% to $13.6 billion after dropping 27.7% in June. Imports in the month fell 37.1% to $19.6 billion according to the latest data released by the government. For the first four months of the fiscal year, exports decreased 34.1% to $49.6 billion and imports fell 32.5% to $78.5 billion.

Exports have fallen for the tenth month in a row and are likely to decline for at least three months.

Gainers & Losers

NHPC shares on the first day of its trading increased 7% from its offer price of 36 rupees to Rs 39.50. The state controlled hydroelectric power company raised 6,040 crore rupees and plans to build seven hydroelectric projects with a combined capacity of 3,240 megawatts.

Reliance Communications increased 3% after it repaid nearly 5,000 crore rupees of debt three years ahead of schedule to lower interest cost, according to an interview with the Reliance Head of Finance Ramesh Venkat. The move is expected to cut the interest cost by 750 crore rupees a year.

Oil & Natural Gas Corporation rose 0.65% to Rs 1193. Cairn India gained 0.75% to Rs 267.20.

Axis Bank Limited fell 1.6% or Rs.15.00 to Rs.891.70.

Britannia Industries Limited climbed 4.5% or Rs.75.45 to Rs.1,721.75 after the bread and biscuit maker said that the company has acquired the stakes of its partners in joint ventures in Dubai and Oman. BusinessLine first reported the news.

Hero Honda Motors Limited rose 1.5% or Rs.23.40 to Rs.1,534.75 reported higher sales in August on cheap loans and availability of credit for the purchase of vehicles.

Hindustan Construction Company Limited increased Rs.0.45 to Rs.109.75 after the infrastructure company received Rs.276.44 crore order.

Indiabulls Real Estate Ltd lost 5.3% or Rs.14.70 to Rs.259.40.

Kalpataru Power Transmission Limited rose 2.4% or Rs.20.10 to Rs.858.50 after the engineering and construction company won more orders to build power transmission towers.

Maruti Suzuki India Limited advanced 6.6% or Rs.95.85 to Rs.1,532.50 after August vehicle sales rose 41.6% to 84,808 units from August.

Mahindra & Mahindra Limited dropped 1.4% or Rs.12.75 to Rs.847.30.

Rolta India Limited gained 2.2% or Rs.3.95 to Rs.182.00.

Sterlite Industries (India) Limited increased 1.1% or Rs.7.70 to Rs.683.00 after the U.S. Bankruptcy judge preferred the plan offered by Grupo Mexico. Sterlite and Groupo Mexico are competing to acquire the bankrupt Asarco copper mine in Arizona, U.S. The district judge will make a final decision regarding Asarco by the end of November.

Tata Motors Limited surged 3.7% or Rs.18.10 to Rs.509.20 after reported a Rs 329 crore consolidated loss for the quarter ending in June on the account of losses at Jaguar Land Rover, UK.

TVS Motor Company Limited jumped 7.3% or Rs.3.55 to Rs.51.90 after motorcycle sales increased 11% in August to 126,842 from a year ago month. Sales in the current fiscal year are 5% ahead from a year ago.

Unity Infraprojects Limited added 3.3% or Rs.12.25 to Rs.383.80 after the engineering and construction company received an order of Rs.325.23 crore from MCGM, Mumbai.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 37.53 or 0.36% to 10,530.06, Hang Seng index in Hong Kong increased 148.11 or 0.75% to 19,872.30 and CSI 300 index in China higher 13.43 or 0.47% to 2,843.70. ASX 200 index in Australia increased 35.50 or 0.79% to 4,514.60. The FTSE Bursa KL Composite index in Malaysia closed lower 2.99 or 0.25% to 1,171.28.

The Kospi Index in South Korea increased 31.21 or 1.96% to close at 1,623.06. SET index in Thailand closed higher 0.87 or 0.13% to 654.12 and JSE Index in Indonesia decreased 14.62 or 0.62% to 2,326.91. The Sensex index in India decreased 115.45 or 0.74% to 15,551.19.