Foreigners Hold Record Stocks in India

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
30 Apr, 2010
New York City

Market index advance on the back of positive earnings. Foreign holdings of stocks increased to record $79.1 billion and bonds to $13 billion. Gold price reached to 4-month high ahead of wedding season. Ashok Leyland Limited net surges three-fold and Biocon Limited net doubled.

[R]6:00 PM Mumbai, 8:30 AM New York – Market index advance on the back of positive earnings. Foreign holdings of stocks increased to record $79.1 billion and bonds to $13 billion. Gold price reached to 4-month high ahead of wedding season.[/R]

The Sensex increased 55.24 or 0.32% to 17,558.71 and CNX Nifty index rose 28.75 or 0.55% to 5,282.90. Among the Sensex 30 stocks, 17 rose and 13 fell.

On BSE trading, 1,828 stocks advanced, 1,033 declined and 110 were unchanged. Metal stocks declined. Banking stocks nudged higher. Most auto stocks advanced ahead of the release of April 2010 monthly sales data next week.

Foreign holdings of Indian stocks and bonds reached a record $79.1 billion and $13.1 billion respectively on April 27 according to data released by Securities and Exchange Board of India.

Gold prices climbed to a four-month high in India and in international markets as investors seek safety of real assets on the ongoing crisis in the euro zone.

State Bank of India rose 1.30% and extended recent gains of 6% after ratings revisions from brokers.

Rupee edged higher 7 paisa to Rs 44.44 against one dollar.

Gainers & Losers

ABB Limited fell 1.5% to Rs 791.50 after the engineering company said first quarter sales rose 12% to Rs 1,455 crore from Rs 1,303 crore a year ago. Net profit for the quarter fell 92% to Rs 6.6 crore compared to net profit of Rs 78.4 crore a year ago.

Allahabad Bank dropped 3.9% to Rs 164.65. The bank said fourth quarter net interest income rose 25% to Rs 742.6 crore from Rs 593 crore a year ago. Net profit for the quarter fell 15% to Rs 224.5 crore compared to net profit of Rs 264.1 crore a year ago.

Ashok Leyland Limited gained 8.7% to Rs 59.95 after the manufacturer of commercial vehicles and related components said fourth quarter sales rose 141% to Rs 2,939 crore from Rs 1,218 crore a year ago. Net profit for the quarter rose 318% to Rs 222.6 crore compared to net profit of Rs 53.3 crore a year ago.

Bharat Electronics Limited added 1.0% to Rs 1,837.80 after the company said fourth quarter sales fell 34% to Rs 1,813.7 crore from Rs 2,735.2 crore a year ago. Net profit for the quarter fell 64% to Rs 199.7 crore compared to net profit of Rs 559.4 crore a year ago.

Bharati Shipyard Limited dropped 3.4% to Rs 280.65. The ship manufacturing/repairing company said fourth quarter sales rose 23% to Rs 349 crore from Rs 284.3 crore a year ago. Net profit for the quarter rose 0.5% to Rs 35.6 crore compared to net profit of Rs 35.4 crore a year ago.

Biocon Limited fell 0.2% to Rs 301.75 after the manufacturer of biotechnology products said fourth quarter sales rose 41% to Rs 657 crore from Rs 466 crore a year ago. Net profit for the quarter rose 222% to Rs 80.6 crore compared to net profit of Rs 25 crore a year ago.

BGR Energy Systems Limited advanced 4.3% to Rs 602.05 after the industrial machinery and equipments maker today announced a technical collaboration with German power major, Hitachi Power Europe GmbH for supercritical steam generators.

Cadila Healthcare Limited rose 0.5% to Rs 564.50 after the pharmaceutical company said fourth quarter sales rose 16% to Rs 816 crore from Rs 702.5 crore a year ago. Net profit for the quarter rose 105% to Rs 119 crore compared to net profit of Rs 58 crore a year ago.

Granules India Limited climbed 3.8% to Rs 108.85 after the company got US drug regulator''s approval for its first abbreviated new drug application for Metformin in multiple strengths.

HCL Technologies Limited rose 1.2% to Rs 389.60 after the company signed a contract with Melbourne IT to support the Australian firm’s integrated web services project.

HCL Infosystems Limited rose 1.9% to Rs 133.65. The provider of computer systems and related services said third quarter sales fell 6% to Rs 2,814.5 crore from Rs 2,996.2 crore a year ago. Net profit for the quarter rose 3.3% to Rs 60.1 crore compared to net profit of Rs 58.2 crore a year ago.

IDBI Bank Limited rose 2.6% to Rs 125.95 after the bank said fourth quarter net interest income rose 58% to Rs 760.2 crore from Rs 481.4 crore a year ago. Net profit for the quarter rose 2% to Rs 318.4 crore compared to net profit of Rs 313.7 crore a year ago.

Indian Overseas Bank rose 1.1% to Rs 96.10 after the bank said fourth quarter total income fell 10% to Rs 2,830 crore from Rs 3,134 crore a year ago. Net profit for the quarter fell 60% to Rs 127 crore or Rs 2.34 per share compared to net profit of Rs 322 crore or Rs 5.92 per share a year ago.

The India Cements Limited fell 1.6% to Rs 125.60 after the cement company said fourth quarter sales fell 2% to Rs 964.3 crore from Rs 980.2 crore a year ago. Net profit for the quarter fell 59% to Rs 38.3 crore compared to net profit of Rs 93.9 crore a year ago.

MBL Infrastructures surged 5.5% to Rs 248.90 after a consortium led by the company secured an order for a road project in Orissa from the National Highways Authority of India.

Panacea Biotec Limited added 2.8% to Rs 220.00 after the drug maker said its pharmaceutical facility at Baddi in Himachal Pradesh has received approval from the US health regulator.

Patni Computer Systems Limited rose 0.4% to Rs 537.35 after the provider of information technology services said first quarter revenues fell 3% to Rs 774.5 crore from Rs 797 crore a year ago. Net profit for the quarter rose 97% to Rs 149.7 crore or Rs 11.24 per share compared to net profit of Rs 76.0 crore or Rs 5.93 per share a year ago.

Sintex Industries Limited fell 1.0% to Rs 324.20 after the plastics and textile business said fourth quarter sales rose 30.4% to Rs 1,083 crore from Rs 830.6 crore a year ago. Net profit for the quarter rose 21.7% to Rs 138.7 crore compared to net profit of Rs 114 crore a year ago.