Auto Sales in India Surge 18%; FDI Up

Mayank Mehta
08 Jan, 2010
New York City

Stocks in India closed lower but appear to charge ahead as the earnings season next week. International investors increase their net exposure to Indian stocks to record $74 billion. 2009 auto sales increased 18.7% to 1.43 million and truck sales more than doubled in December.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India closed lower but appear to charge ahead as the earnings season begin next week. International investors increase their net exposure to Indian stocks to record $74 billion. 2009 auto sales increased 18.7% to 1.43 million.[/R]

Stocks in volatile trading closed lower but the rupee advanced. International investors increased their holdings of local stock to $73.4 billion according to the data released by the SEBI.

The Sensex index in India decreased 75.43 or 0.4% to 17,540.29 and CNX Nifty index fell 18.35 or 0.35% to 5,244.75. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 1,711 stocks advanced, 1,174 declined and 72 were unchanged.

Software exporters extended recent losses as the rupee advances against the dollar. Metal and banking stocks fell. But, realty stocks closed higher.

Finance Minister Pranab Mukherjee said on Friday that the economy could grow 7.75% in the current fiscal year ending in March.

Rupee edged lower 8 paisa to 45.75 against one dollar, for the week the rupee advanced 1.8% as foreign investors added net investments by $563 million in the week.

Auto sales increased 18.7% in 2009 to 1.43 million after rising 2% in 2008. Passenger car sales increased to 115,268 units and trucks and buses sales doubled to 48,614. Sales of Scooters and motorcycles surged 67% to 767,796 units according to the data released by the Society of Indian Automobile Manufacturers.

Gainers & Losers

Aarti Drugs Ltd gained 3.4% to Rs 109.00 after the maker of pharmaceuticals said it plans to spend up to Rs 40 crore for expansion and acquisition.

Ashok Leyland added 1.0% to Rs 53.25 after the truck maker said total unit sales jumped 164% to 6,099 units in December 2009.

BGR Energy Systems Limited rose 7.9% to Rs 562.65 after the manufacture of industrial machinery and equipments said it has signed a 15-year pact with Nooter/Eriksen Inc. to make heat recovery boilers.

Eicher Motors Limited rose 2.0% to Rs 653.40 after total unit sales surged 202.8% to 2,665 trucks and buses in December compared with 748 units a year ago.

Emmsons International Limited surged 19.9% to Rs 95.45.

IFCI Limited decreased 2.2% to Rs 57.60 after the development financing company said third quarter sales rose 9% to Rs 385 crore from Rs 353 crore a year ago. Net profit for the quarter rose 31% to Rs 136 crore compared to net profit of Rs 104.5 crore a year ago.

Indiabulls Real Estate Ltd climbed 3.5% to Rs 227.25 after a foreign brokerage house raised its rating on the stock to ''buy'' citing a potential for a recovery in the office property market and a steady growth in key residential markets.

Ipca Laboratories Limited advanced 4.6% to Rs 1,100.00 after the pharmaceutical company said its board will meet on January 21 to consider stock split.

Kalpataru Power Transmission Limited fell 0.06% to Rs 1,165.50 after the company announced that it has secured two orders of Rs 250 crores from Tamil Nadu Electricity Board and Algeria in Africa.

McLeod Russel India Limited dropped 6.2% to Rs 286.85.

Motilal Oswal Financial Services Limited rose 0.2% to Rs 176.80 after the brokerage firm said third quarter sales rose 73.6% to Rs 151.7 crore from Rs 87.4 crore a year ago. Net profit for the quarter rose 82% to Rs 37.1 crore or Rs 2.59 per diluted share compared to net profit of Rs 20.4 crore or Rs 1.44 per share a year ago.

NTPC Limited rose 1.6% to Rs 232.00 after the thermal power generator plans to sell stocks in a follow-on offering between February 3 and 5 and price shares between Rs 240 and 250.

Orchid Chemicals & Pharmaceuticals Limited added 1.6% to Rs 189.50 after the company Friday said it has received a tentative approval from the U.S. Food and Drug Administration to make and sell memantine hydrochloride tablets in 5 mg and 10 mg strengths.

Ranbaxy Laboratories Limited climbed 1.6% to Rs 517.90 after the pharmaceutical industry got approval from UK healthcare regulator for Cefuroxime powder in multiple strengths.

Reliance Industries fell 0.29% to Rs 1,102.

Rohit Ferro-Tech Limited rose 2.1% to Rs 45.14 after the company announced that the board on January 7 has approved the rights offering.

Transgene Biotek Limited rose 3.3% to Rs 74.50 after the company said it has sold the license for the manufacturing process of obesity drug Orlistat to Dr. Reddy''s Laboratories Ltd.

Tube Investments of India Limited increased 6.9% to Rs 74.50 and three bulk deals aggregating 0.91% changed hands today.

Viceroy Hotels Limited added 2.6% to Rs 54.20 after the board approved raising as much as $15 million by selling up to 10 million shares to institutions. The board also approved spinning off under-construction hotels in the southern Indian city of Bangalore into a new unit.