India's GDP Rises at 7.9%; Stocks Up

Mayank Mehta
30 Nov, 2009
New York City

India''s economy in the quarter ending in September increased at 7.9% from a year ago. The faster than expected growth lifted stocks and rupee edged higher. Tata Motors swung to a small net profit on higher sales and lower operating costs.

[R]6:00 PM Mumbai, 8:30 AM New York – Indian economy in the quarter ending in September increased at 7.9% from a year ago. The faster than expected growth lifted stocks and rupee edged higher. Tata Motors swung to a small net profit on higher sales and lower operating costs.[/R]

Stocks in Mumbai traded higher. DSP Merrill Lynch Equity Fund sells 0.93% stake in Aban Offshore. Jindal Saw shines after fixing record date for stock-split. Record date for bonus issue lifts Adani Enterprises. Span Diagnostics receives order worth Rs 22.96 crore.[/R]

Stocks in Mumbai closed higher after fiscal second quarter GDP increased 7.9% from a year ago. The higher than expected growth surprised investors and software exporters and automakers closed higher.

Finance minister Pranab Mukherjee today said he expects the economy to grow around 7% in the fiscal year ending March 2010.

The Sensex index in India increased 294.21 or 1.7% to 16,926.22 and CNX Nifty index rose 90.95 or 1.8% to 5,032.70. Among the Sensex 30 stocks, 26 rose and 4 fell.

On BSE trading, 2,062 stocks advanced, 761 declined and 72 were unchanged.

Rupee edged higher 25 paisa to 46.39 against one dollar.

Investors are concerned about the ongoing financial crisis in Dubai and still not sure the exposure that local banks have in the Middle East region. India receives about $59 billion in remittances from overseas workers.

Nearly 4 million of people from India are working in Dubai, Saudi Arabia, Oman and other countries in the Gulf region.

Gainers & Losers

Aban Offshore Limited added 2.4% to Rs 1,267.10 after DSP Merrill Lynch Equity Fund on late Friday, November 27, sold 0.93% stake in offshore drilling contractor in the private sector, for Rs 321.31 million.

Adani Enterprises Limited rose 0.6% to Rs 815.70 after the company set December 11 as a date to split for a 1-to-1 bonus.

Dwarikesh Sugar Industries Limited climbed 1.9% to Rs 121.15 after the sugar maker said full-year sales rose 69% to Rs 462 crore from Rs 273.4 crore a year ago. Net profit for the full-year was Rs 25 crore compared to net loss of Rs 25 crore a year ago.

Geometric Ltd rose 4.5% to Rs 55.15.

HDFC Bank Limited rose 0.4% to Rs 1,756.25 announced exercise of rights to convert 2,62,00,220 warrants into equity shares of Rs 10 each of the company and has remitted an amount of Rs 3,608.06 crore, the balance of the subscription amount.

Jay Shree Tea & Industries Limited increased 3.0% to Rs 352.15 after The Birla and Khaitan families of Kolkata two of India’s oldest and biggest players in the tea business are competing with each other to acquire four tea gardens in Uganda from a British firm, according to an official of the Tea Board of India, the industry regulator.

Jindal Saw Limited advanced 6.7% to Rs 932.30 after the company set December 11 as a date to split its stocks 5-to-1.

Kalyani Steels Limited rose 4.9% to Rs 189.70 after one of the promoter group companies hiked its stake in the firm.

Larsen & Toubro Limited rose 1.8% to Rs 1,615.60 after Nuclear Power Corporation Of India Limited announced the formation of a joint venture company to produce special steel and ultra heavy forgings.

Nitco Tiles Limited fell 0.3% to Rs 51.90 after the manufacturer of tiles said second quarter sales fell 49% to Rs 81.1 crore from Rs 158.6 crore a year ago. Net loss for the quarter was Rs 8.26 crore compared to net profit of Rs 9.7 crore a year ago.

Oil and Natural Gas Corporation Limited rose 2.4% to Rs 1,197.30.

Shriram EPC Limited increased 4.0% to Rs 230.00 and the company signed with China based North West Electric Power Design Institute to form a consortium for the execution of thermal power projects to be implemented in India.

Sharyans Resources Limited rose 3.3% to Rs 81.05.

Span Diagnostics Limited surged 10.0% to Rs 69.30 and the company received order of Rs 22.96 crore from the United Nations agency for supply of HIV test kits.

Suven Life Sciences Limited increased 4.8% to Rs 25.85 after that European Patents Office issued three new patents for new chemical entities for the treatment of disorders associated with Neurodegenerative diseases that are valid until 2022, 2023 and 2024 respectively.

Tata Motors Limited rose 4.1% to Rs 660.90 after it reported second quarter profit of 21.8 crore rupees on higher sales and lower operating costs.

Valecha Engineering Limited rose 4.5% to Rs 110.00 after the company''s board approved raising funds up to $20 million.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 264.03 or 2.91% to 9,345.55, and Hang Seng index in Hong Kong increased 687.00 or 3.25% to 21,821.50, and CSI 300 index in China higher 129.16 or 3.82% to 3,511.67. ASX 200 index in Australia increased 129.20 or 2.83% to 4,701.30 The FTSE Bursa KL Composite index in Malaysia was lower 11.50 or 0.91% to 1,259.11.

The Kospi Index in South Korea increased 31.10 or 2.04% to close at 1,555.60. SET index in Thailand closed higher 8.70 or 1.28% to 689.07. JSE Index in Indonesia increased 22.32 or 0.93% to 2,415.84. The Sensex index in India increased 294.21 or 1.77% to 16,926.22.