India Debt Auction, Stocks Volatile

Mayank Mehta
21 Apr, 2010
New York City

Stocks in Mumbai gyrated ahead of weather forecast this week and the government auction of $2.7 billion debt. Reserve Bank of India governor Subbarao left the door open for interest rate change ahead of the next scheduled meeting in two months.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai gyrated ahead of weather forecast this week and the government auction of $2.7 billion debt. Reserve Bank of India governor Subbarao left the door open for interest rate change ahead of the next scheduled meeting in two months.[/R]

The benchmark index in Mumbai closed higher in a volatile trading ahead of the government bond auction and weather forecast this week. Government of India is scheduled to raise Rs 12,000 crore this week.

Reserve Bank of India governor Subbarao in talks with reporters yesterday said interest rates may be revised before the next meeting on July 27.

The Sensex index in India increased 11.98 or 0.07% to 17,472.56 and CNX Nifty index rose 10.10 or 0.19% to 5,240.20. Among the Sensex 30 stocks, 19 rose and 11 fell.

On BSE trading, 1,955 stocks advanced, 874 declined and 104 were unchanged. Reliance Industries, Larsen & Toubro and Infosys Technologies closed lower.

Rupee edged higher 14 paisa to 44.38 against one dollar.

The Indian Meteorological Department is expected to release its forecast of rainfall for the nation on April 23. Governor Subbarao cautioned that the central bank’s current inflation forecast is based on “normal rain fall season.”

Gainers & Losers

Binani Cement Limited gained 8.0% to Rs 85.40 after the company scheduled a board meet on April 23 to consider a share buyback plan.

Essar Shipping Ports & Logistics Limited increased 3.6% to Rs 98.05 after the company agreed with Paradip Port Trust to invest Rs 500 crore for the mechanization of dry bulk cargo berth at the port located in Orissa on the Eastern coast of India.

Fortis Healthcare Limited added 1.8% to Rs 162.90.

GSS America Infotech Limited rose 3.4% to Rs 347.75 after the board approved the plan to raise up to Rs 80 crore.

HCL Technologies Limited gained 8.3% to Rs 374.10 an information technology company said third quarter revenues rose 7.5% to Rs 3,075.7 crore from Rs 2,861.5 crore a year ago. Net profit for the quarter rose 57.7% to Rs 344 crore or Rs 19.9 per diluted share compared to net profit of Rs 218.1 crore or Rs 13.1 per share a year ago.

Orchid Chemicals & Pharmaceuticals Limited added 2.0% to Rs 156.75 and received a U.S. regulatory approval for a generic drug.

Polaris Software Lab Limited climbed 3.8% to Rs 186.00 an information technology company said fourth quarter sales rose 4% to Rs 351 crore from Rs 337 crore a year ago. Net profit for the quarter rose 42.3% to Rs 45.7 crore or Rs 4.58 per diluted share compared to net profit of Rs 32.1 crore or Rs 3.25 per share a year ago.

Reliance Industrial Infrastructure Limited fell 0.8% to Rs 840.65 an industrial infrastructure company said fourth quarter sales fell 42% to Rs 10.6 crore from Rs 18.3 crore a year ago. Net profit for the quarter fell 17% to Rs 5.4 crore compared to net profit of Rs 6.5 crore a year ago.

TVS Motor Company Limited added 1.5% to Rs 87.60 after the maker of two-wheelers said fourth quarter sales rose 34% to Rs 1,192.4 crore from Rs 892 crore a year ago. Net profit for the quarter rose 39% to Rs 20.3 crore compared to net profit of Rs 14.6 crore a year ago.

Unitech Limited advanced 2.9% to Rs 86.00 after the shares rose more than 4% on Wednesday after the real estate firm said it would spin off some businesses including telecom services.

Zee Entertainment Enterprises Limited rose 2.4% to Rs 302.05 after the media and entertainment company said fourth quarter revenues rose 26% to Rs 649.3 crore from Rs 513.8 crore a year ago. Net profit for the quarter rose 33% to Rs 128.8 crore compared to net profit of Rs 96.8 crore a year ago.