India Stock Advance Continues; Exprots Fall

Mayank Mehta
11 Nov, 2009
New York City

Stocks in India continued their ascent after the release of exports and tax collection data. Exports in October fell 11.4% and in the seven months declined 26.5%. Indirect tax collection fell 21.6% in the period. Shree Renuka Sugars Ltd acquired Brazil based sugar plantation.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India continued their ascent after the release of exports and tax collection data. Exports in October fell 11.4% and in the seven months declined 26.5%. Indirect tax collection fell 21.6% in the period. Shree Renuka Sugars Ltd acquired Brazil based sugar plantation.[/R]

Stocks in Mumbai surged after exports fell less than expected and global optimism on the economic recovery. Shree Renuka Sugars acquired sugar plantation in Brazil for $82 million.

The Sensex index in India increased 409.04 or 2.4% to 16,849.60 and CNX Nifty index rose 122.25 or 2.5% to 5,003.95. Among the Sensex 30 stocks, the 30 share Sensex pack rose.

On BSE trading, 1,718 stocks advanced, 1,002 declined and 87 were unchanged.

The Meteorological Department has issued cyclone alert north Maharashtra and south Gujarat.

Trade Secretary Rahul Khullar said on Wednesday that exports fell 11.4% to $12.5 billion in October from a year ago month. Exports in the seven months to October decreased 26.5% to $90.4 billion from a year ago period.

The government today said indirect tax receipts fell 21.6% to Rs 127,000 crore in the seven month period.

The Reserve Bank of India may withdraw some monetary stimulus if inflation rises towards the end of 2009, C. Rangarajan, chairman of the Prime Minister''s economic advisory council, said on Wednesday.

Rupee edged lower 2 paisa to 46.52 against one dollar.

Gainers & Losers

Allcargo Global Logistics Limited climbed 0.5% to Rs 850.00 after the project logistics company set November 20 as a date to split its stocks 5-to-1.

Asian Tea and Exports Limited decreased 4.9% to Rs 38.25 after the tea exporter board scheduled a meeting to consider raising capital to expand the business.

Ballarpur Industries Limited added 1.7% to Rs 23.30 after the manufacturer and exporter of paper said the company redeemed debentures worth Rs 1,000 crore issued by BILT Graphic Paper Products, a wholly owned subsidiary.

C & C Constructions Limited increased 7.2% to Rs 245.00 after the company''s board approved raising funds.

Educomp Solutions Limited surged 10.2% to Rs 788.80.

Fedders Lloyd Corporation fell 2.0% to Rs 74.50, stock had surged 21% in the last seven trading sessions.

JAI Corp Limited fell 5.3% to Rs 227.55, the stock had surged 56% in five trading sessions.

Jubilant Organosys Limited surged 19.3% to Rs 271.20 after the company and Duke University based in North Carolina, U.S. signed broad agreement translate some of the drug discoveries into clinical therapies.

NIIT Technologies Ltd fell 1.6% to Rs 141.65 partnered with Hitachi Information Systems, a leading provider of IT infrastructure services in Japan to offer services in cloud computing.

NMDC Limited rose 7.5% to Rs 466.25 the government controlled minerals development and trading company increased. Investors are expecting the government to lower stake in the company.

The Phoenix Mills Limited rose 3.4% to Rs 192.05 after the developer and operator of large format retail-led mixed use developments said Trikona Trinity Capital has sold its investment in the company.

Pyramid Saimira Theatre Limited decreased 9.8% to Rs 19.65 after the theatre chain company said the market regulator SEBI barred the company from trading in the securities market for seven years following irregularities in its 2006 initial public offering.

Rural Electrification Corporation Limited added 4.4% to Rs 226.50 said that the Ministry of Power, approved secondary offering of 17.17 crore shares or 20% of existing paid-up capital.

Shree Renuka Sugars Limited rose 1.8% to Rs 218.30 said that it has entered into definitive agreements for the acquisition of Vale do Ivai S.A Acucar E Alcool. Shree Renuka will assume $160 million of debt and pay $82 million in cash for the acquisition.

The acquisition includes two sugar and ethanol production facilities located in the Southern state of Parana with a combined cane crushing capacity of 3.1 million tons per annum. The sugar plantation is spread over 1,800 hectare.

The company is also in exclusive discussion with Equipav Group in Brazil and plans to use $120 million raised from international investors to fund the purchases.

Sundaram Brake Linings Limited dropped 1.1% to Rs 180.00 after the maker of industrial friction materials said that the company has decided to increase the production capacity of friction materials by 3,000 metric tons from the existing 20,000 metric tons.

Titagarh Wagons Limited increased 5.3% to Rs 310.05 after the railway wagons maker said that the company is likely to secure an order worth Rs 200 crore from the Indian Railways.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 0.95 or 0.01% to 9,871.68, and Hang Seng index in Hong Kong increased 359.05 or 1.61% to 22,627.21, and CSI 300 index in China lower 8.10 or 0.23% to 3,495.67. ASX 200 index in Australia increased 23.40 or 0.49% to 4,757.00. The FTSE Bursa KL Composite index in Malaysia was lower 3.93 or 0.31% to 1,270.15.

The Kospi Index in South Korea increased 12.52 or 0.79% to close at 1,594.82. SET index in Thailand closed higher 9.70 or 1.37% to 717.90. JSE Index in Indonesia increased 21.92 or 0.92% to 2,403.88. The Sensex index in India increased 409.04 or 2.49% to 16,849.60.