Earnings Lift Sentiment in Mumbai Trading

Mayank Mehta
23 Apr, 2010
New York City

Stocks in Mumbai traded higher on positive earnings and normal monsoon forecast. Wipro quarterly net surged 21%. Ambuja Cement first quarter sales increased 8% and net soared 38%. Rupee edged higher.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded higher on positive earnings and normal monsoon forecast. Wipro quarterly net surged 21%. Ambuja Cement first quarter sales increased 8% and net soared 38%. Rupee edged higher.[/R]

The benchmark stock index Sensex gained for the fourth straight day after expectations that Reliance Industries earnings for the quarter ended March will beat analyst’s estimates.

The Indian Meteorological Department forecasted monsoon rainfall will be near normal at 98% with an error margin of plus or minus 5%, according to a statement released on its Web site. Normal monsoon will help in controlling food price inflation.

Wipro Ltd reported fourth quarter profit rose by 21% as demand for computer services improved globally.

The Sensex index in India increased 120.21or 0.68% to 17,694.20 and CNX Nifty index rose 23.30 or 0.44% to 5,292.65. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 1,375 stocks advanced, 1,474 declined and 95 were unchanged. Bank stocks rose on an expected increase in lending growth in the current year in a rebounding economy.

Rupee edged higher 12 paisa to 44.55 against one dollar.

Gainers & Losers

ABG Shipyard Limited advanced 254.75 after the private sector shipbuilder won a $114 million order to construct four cement carriers for the Singapore-based Associated Bulk Carriers Ltd.

Ambuja Cements Ltd closed unchanged at Rs 120.00 after the cement company said first quarter sales rose 7.7% to Rs 1,990 crore from Rs 1,847.6 crore a year ago. Net profit for the quarter rose 38% to Rs 462.2 crore compared to net profit of Rs 334.1crore a year ago.

Birla Corporation Limited fell 0.1% to Rs 404.95 after the cement manufacturer said fourth quarter sales rose 5.4% to Rs 602 crore from Rs 571 crore a year ago. Net profit for the quarter rose 51% to Rs 137 crore compared to net profit of Rs 90.6 crore a year ago.

Escorts Limited added 2.6% to Rs 179.20. The second quarter sales rose 40% to Rs 671.7 crore from Rs 481.6 crore a year ago. Net profit for the quarter rose 432% to Rs 41.5 crore or Rs 4.25 per share compared to net profit of Rs 7.8 crore or Rs 0.86 per share a year ago.

Manaksia Limited rose 2.9% to Rs 113.50 after the company said its board will meet on April 28 to consider buy-back of shares.

Nestle India Limited fell 3.6% to Rs 2,761.00. The first quarter sales rose 49% to Rs 1,480 crore from Rs 992 crore a year ago. Net profit for the quarter rose 2.5% to Rs 202 crore compared to net profit of Rs 197 crore a year ago.

Rallis India Limited added 1.8% to Rs 1,443.50 after the agro-inputs maker said full-year net profit surged 41% to Rs 101.04 crore.

Sterlite Industries (India) Limited fell 1.4% to Rs 793.05 after the company tracked the fall in ADR.

Swiss Glascoat Equipments Limited surged 10.5% to Rs 38.80 after the company’s fourth quarter net profit surged 92.5% to Rs 1.02 crore.

Tata Sponge Iron Limited gained 3.7% to Rs 374.40 after the company’s fourth quarter net profit surged 188.7% to Rs 33.35 crore.

Valecha Engineering Limited fell 0.05% to Rs 204.85. The company recently secured two projects for Rs.147 crore.

Wipro Limited fell 1.4% to Rs 692.95. The fourth quarter sales rose 7% to Rs 6,978 crore from Rs 6,528 crore a year ago. Net profit for the quarter rose 21% to Rs 1,214 crore or Rs 8.23 per share compared to net profit of Rs 1,006 crore or Rs 6.85 per share a year ago.