India Tax Collection Rises; Patni Surges

123jump.com Staff
05 Nov, 2009
New York City

Tax collection in India increased 3.9% in the first seven months in fiscal year indicating rising income of corporations and individuals. Wireless telecoms rebounded on the talks of lower connection fees. Larsen & Toubro unit and Patni are in merger discussion.

[R]6:00 PM Mumbai, 8:30 AM New York – Tax collection in India increased 3.9% in the first seven months in fiscal year indicating rising income of corporations and individuals. Wireless telecoms rebounded on the talks of lower connection fees. Larsen & Toubro unit and Patni are in merger discussion.[/R]

Stocks edged higher after the tax authorities reported higher tax collection in the first seven months to October. Talks of lower telecom connection fees also lifted wireless telecom stocks.

The Sensex index in India increased 151.77 or 0.9% to 16,063.90 and CNX Nifty index rose 54.75 or 1.1% to 4,765.55. Among the Sensex 30 stocks, 7 declined and 23 rose.

On BSE trading, 1,816 stocks advanced, 840 declined and 74 were unchanged.

Rupee edged lower 20 paisa to 47.13 against one dollar.

The Central Board of Direct Taxes said that total tax collection in the period between April and October of this year increased 3.9% to Rs 170,000 crore ($35.8 billion). Collection from corporations increased 4.6% to Rs 109,000 crore rupees and personal income taxes increased to Rs 63,200 crore rupees.

Gainers & Losers

Cairn India Limited added 1.8% to Rs 269.90 after the oil explorer concluded an agreement to supply crude oil from the Mangala field to Reliance Industries Limited in Jamnagar, Gujarat.

Eicher Motors Limited increased 1.6% to Rs 515.00 after the commercial vehicle maker reported sales increase of 71% in October.

Everest Kanto Cylinder Limited rose 4.2% to Rs 143.20 after one of the promoters increased stake in the manufacture of high pressure seamless gas cylinders and pressure vessels.

Geometric Limited fell 0.1% to Rs 43.55.

Hindusthan National Glass & Industries Limited rose 5.2% to Rs 714.00 after the container glass packaging solutions provider set November 13 to split its stocks 5-to-1.

JSW Steel Limited rose 8.3% to Rs 781.00 after the producer of iron and steel products reported a growth of 34% in crude steel production in October to 0.453 million tons.

Maytas Infra Limited rose 5.0% to Rs 149.45 after the construction and infrastructure developer said it has secured an order worth Rs 790 crore from IL&FS Transportation Networks Ltd for road construction work.

Mercator Lines Limited rose 5.8% to Rs 47.30 rebounded for the second day in a row after falling nearly one third in the last one week of trading.

Nagarjuna Construction Company Limited fell 0.6% to Rs 157.25.

Orient Abrasives Limited climbed 1.9% to Rs 21.40 after the business of manufacturing and selling calcined and fused alumina products said that it is setting up another 1.5 MW wind turbine project in Jaisalmer, Rajasthan.

Patni Computer Systems Limited advanced 7.2% to Rs 490.40 after Financial Express reported that the outsourcing unit of engineering and construction firm Larsen & Toubro is in advanced talks to acquire a majority stake in software firm.

Rashtriya Chemicals & Fertilisers Limited increased 7.6% to Rs 63.35 and the company is negotiating with several cement companies a distribution agreement.

Reliance Industries Limited rose 0.8% to Rs 1,937.55.

Suzlon Energy Limited surged 14.2% to Rs 63.00 on bargain hunting after the stock had declined more than one third in the last two weeks.

Sujana Towers Limited rose 4.9% to Rs 53.95 after a private equity investor acquired 5% stake in the power and telecom tower maker.

Vishal Information Technologies Limited fell 1.2% to Rs 12.78.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 126.87 or 1.29% to 9,717.44, and Hang Seng index in Hong Kong decreased 135.69 or 0.63% to 21,479.08, and CSI 300 index in China higher 10.43 or 0.30% to 3,464.32. ASX 200 index in Australia decreased 32.10 or 0.71% to 4,508.00. The FTSE Bursa KL Composite index in Malaysia was higher 0.12 or 0.01% to 1,253.96.

The Kospi Index in South Korea decreased 27.69 or 1.75% to close at 1,552.24. SET index in Thailand closed lower 4.50 or 0.66% to 681.91. JSE Index in Indonesia decreased 4.64 or 0.20% to 2,367.21. The Sensex index in India increased 151.77 or 0.95% to 16,063.90.