Sensex in India Up 1.6%; Exports, Imports Fall

Mayank Mehta
01 Dec, 2009
New York City

The benchmark index in Mumbai increased 1.6% as the global worries of wider contagion emanating from Dubai receded. Emerging markets and Asian markets gained. Exports in October fell 6.6% and imports declined 15%, but deficit remain close to $9 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – The benchmark index in Mumbai increased 1.6% as the global worries of wider contagion emanating from Dubai receded. Emerging markets and Asian markets gained. Exports in October fell 6.6% and imports declined 15%, but deficit remain close to $9 billion.[/R]

The Sensex index in India increased 272.05 or 1.6% to 17,198.27 and CNX Nifty index rose 89.30 or 1.7% to 5,122. Among the Sensex 30 stocks, 27 rose and 3 fell.

On BSE trading, 2,091 stocks advanced, 746 declined and 82 were unchanged.

Exports fell 6.6% to $13.19 billion in October from a year ago month, thirteenth monthly decline in a row, the government said on Tuesday. Imports dropped 15% from a year ago month to $22 billion. The trade deficit declined to $8.8 billion in October from $11.74 billion a year earlier.

C. Rangarajan, chairman of the prime minister''s Economic Advisory Council today said the robust growth of the economy in the three months to September and indicated that economy may expand at 7% in the current fiscal year.

Finance Minister Pranab Mukherjee told parliament today that the current trend in inflation in India is a result of a shortage of food and not from the rising demand. The food price index rose an annual 15.6% in the week of November 14, up from the previous week''s 14.6% rise.

Rupee edged higher 11 paisa to 46.40 against one dollar.

Dubai Worries Recede

Global markets rebounded after Dubai World initiated talks to restructure only half of $59 billion of loans. Investors’ fears of wider contagion involving Russia, Ireland and Greece for now are receding.

Dubai World said that restructuring talks with lenders are “constructive” and is seeking to delay the repayment of $26 billion of loans. For now there appears to be no talks to reduce the debt burden and at least nine lenders are involved in direct talks.

Even though markets in Europe and Asia recovered as the prospect of wider contagion do not appear likely but the markets in Dubai and Qatar dropped.

Gainers & Losers

Aban Offshore Limited advanced 4.9% to Rs 1,325.25 on the talks of listing plans for Singapore subsidiary.

Aksh Optifibre Limited increased 4.9% to Rs 21.05 said that it would issue American depositary receipt global depositary receipt foreign currency convertible bond or other convertible securities to raise up to $8 million.

AREVA T&D India Limited rose 2.8% to Rs 299.55 said two French firms Alstom and Schneider Electric have jointly bid for acquiring transmission and distribution business of Paris-based company for an equity value of €2,290 million (about Rs 16,000 crore).

Arshiya International Limited surged 11.2% to Rs 164.75 after the supply chain and logistics infrastructure company said the company said a promoter revoked a portion of the shares pledged earlier.

Consolidated Construction Consortium Ltd added 2.6% to Rs 395.00 said that it has secured orders worth Rs 405 crores which includes the construction of 4 x 350 MW power plant, Phase I in Chhatisgarh.

Cipla Limited rose 2.7% to Rs 329.00 said is in talks with a host of global drug makers, including Pfizer Inc, to supply generic products, a top official of the Indian drug maker said.

Hero Honda Motors Limited rose 0.7% to Rs 1,733.00 posted 32% higher sales in November of 381,378 units.

Jubilant Organosys Limited climbed 3.1% to Rs 310.35 after the company extended its research work contract with U.S. based Eli Lilly & Co. for five more years.

Maruti Suzuki India Limited rose 1.5% to Rs 1,587.00 after the car maker reported 66.6% jump in its total sales at 87,807 units during October.

Mercator Lines Limited rose 3.8% to Rs 58.80 after the provider of sea-borne transportation services provider today announced that it has taken delivery of a 1993 built MR tanker of 42,235 dwt.

Mahindra & Mahindra Limited added 4.8% to Rs 1,078.00 after total vehicle sales soared 96% to 22,587 units in November 2009 over November 2008.

Peninsula Land Limited rose 4.6% to Rs 81.45 said on Tuesday that it has received additional Rs 160 crore from Alok Realtors Pvt Ltd for sale of Peninsula Business Park land.

Speciality Papers Limited surged 20% to Rs 20.40 after the company set December 5 as a date to split its stocks 10-to-1.

Sterlite Technologies Limited climbed 5.1% to Rs 325.45 after the company secured new contracts worth over Rs 600 crore in November.

Tata Elxsi Limited rose 1.1% to Rs 169.70 after the systems integration and software developer’s managing director Madhukar Dev told the media that the revenue is expected to be between $300 and $400 million in three years.

UTV Software Communications Limited increased 4.2% to Rs 473.25 said on Tuesday its UTV Motion Pictures unit signed syndication deals worth Rs 95 crore, granting telecast rights on its movies produced in 2008 and 2009.

Valson Industries Limited climbed 7.8% to Rs 79.00 after the textile maker said the company set December 8 as a date to split its stocks 1-to-1 bonus issue.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 226.65 or 2.43% to 9,572.20, and Hang Seng index in Hong Kong increased 291.65 or 1.34% to 22,113.15, and CSI 300 index in China higher 49.16 or 1.40% to 3,560.83. ASX 200 index in Australia increased 17.70 or 0.38% to 4,719.00 The FTSE Bursa KL Composite index in Malaysia was higher 7.60 or 0.60% to 1,266.71.

The Kospi Index in South Korea increased 14.12 or 0.91% to close at 1,569.72. SET index in Thailand closed higher 20.94 or 3.04% to 710.01. JSE Index in Indonesia increased 36.66 or 1.52% to 2,452.50. The Sensex index in India increased 272.05 or 1.61% to 17,198.27.