India: Sugar Crops to Surge 26%, Exports up 35%

Mayank Mehta
31 Mar, 2010
New York City

Stocks in Mumbai traded lower after rising for two weeks. February industrial output is expected to increase 16% from a year ago. Exports in the month surged 34.8% to $16.09 billion. Sugar crop in the current season is expected to surge 26% to 18 million tons.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower after rising for two weeks. February industrial output is expected to increase 16% from a year ago. Exports in the month surged 34.8% to $16.09 billion. Sugar crop in the current season is expected to surge 26% to 18 million tons.[/R]

Stocks in Mumbai traded lower after rallying for more than a week. Bharti Airtel completed its transaction to acquire African assets of Kuwait based Zain. Sugar output this season is expected to surge as much as 26% according to the industry association.

The Sensex index in India decreased 62.40 or 0.35% to 17,527.77 and CNX Nifty index fell 13.35 or 0.25% to 5,249.10. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 1,578 stocks advanced, 1,188 declined and 106 were unchanged. FMCG and IT stocks fell. Index heavyweight Reliance Industries took edged lower.

Industrial output in February was estimated to increase 16% from a year ago, Industry Secretary said on Wednesday. The output in January grew by 16.7%.

Exports in February surged 34.8% on year to $16.09 billion, Trade Minister Anand Sharma said on Wednesday. Exports are expected to grow between 15% and 20% in the next year beginning April 1, Sharma said.

Rupee edged lower 3 paisa to 45.12 against one dollar.

Vinay Kumar, managing director of National Federation of Cooperative Sugar Factories Ltd told reporters sugar output in the current season is expected to increase to 18 million tons to 18.5 million tons from 14.7 million tons a year ago. Late seasonal rain and improved yields are expected to help the increase.

Sugar crop in Maharashtra is expected to grow to 6 million tons from 5 million tons an in Uttar Pradesh is expected to increase to 4.8 million tons from 4.1 million tons a year ago.

Gainers & Losers

Ahluwalia Contracts (India) Ltd gained 5.0% to Rs 212.60 after the company won orders of Rs 425 crore for civil and structural construction.

Bharti Airtel Limited added 1.2% to Rs 314.90 after the company agreed to buy Zain’s African assets.

Compact Disc India Ltd gained 5.0% to Rs 75.40 after a promoter company Seengal Capital Advisors raised its stake to 24.69% from 20.01%.

DLF Limited rose 1.7% to Rs 314.20 after the company is looking to launch two housing projects in Mumbai at a price range of between Rs 15,000 and 25,000 per square feet.

KSK Energy Ventures Limited rose 3.5% to Rs 184.20 after the power project development company today announced that it has commenced power generation for 135 MW lignite fired project in Rajasthan.

NMDC Limited rose 1.3% to Rs 298.50 after the company plans an increase in iron ore prices for both domestic and export markets by 70%.

Plethico Pharmaceuticals Limited rose 1.6% to Rs 380.70 after the company reported fourth quarter net profit Rs 33.49 crore compared to net loss of Rs 43.13 crore a year ago.

Pyramid Saimira Theatre Limited surged 9.7% to Rs 16.95 after the company plans to shut all of its operations, by putting its remaining businesses and subsidiaries on the block.

Rana Sugars Limited surged 19.1% to Rs 13.01 after the company signed a pact with Tata Power Company to sell 40 megawatts of electricity per day during off season.

Subhash Projects and Marketing added 2.3% to Rs 142.50 after the company secured order for Rs 210 crore from Rajasthan Rajya Vidyut Utpadan Nigam, Jaipur.

Sesa Goa Limited rose 2.9% to Rs 471.10 after the state controlled competitor NMDC raised prices by 70%.

Srinivasa Hatcheries Limited added 3.2% to Rs 155.80 after the company''s board approved 1-to-1 bonus.

Tata Motors Limited rose 2.6% to Rs 758.85 after the company plans to sell 20% equity stake in telecom and the construction equipment joint venture to its partner Hitachi of Japan for Rs 1,159 crore.

Transgene Biotek Limited advanced 1.3% to Rs 72.50 after the company announced that it has developed a new cancer drug using a specific monoclonal antibody.

TTK Prestige Limited gained 7.5% to Rs 616.10 after the company launched a new microwave pressure cooker.

Valecha Engineering Limited surged 10% to Rs 176.00 and the stock has jumped 70% in the last seven trading sessions.