Sensex Rebounds; NHPC net jumps 84%

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
26 May, 2010
New York City

The stocks in India rose the most in a fortnight after world markets and commodities prices recover and investors focus on the economic outlook in India. The benchmark index had dropped as much as 11% since April 7.

[R]6:00 PM Mumbai, 8:30 AM New York – Sensex index in Mumbai rebounded more than 2% on the rising corporate profits. Milestone payment from Abbott strengthens Cadila Healthcare. Cairn India tracks recovery in crude oil. Mahindra & Mahindra Ltd acquires 55% stake in alternative energy company.[/R]

The stocks in India rose the most in a fortnight after world markets and commodities prices recover and investors focus on the economic outlook in India. The benchmark index had dropped as much as 11% since April 7.

The Sensex index in India rebounded 365.36 or 2.3% to 16,387.84 and CNX Nifty index rose 76.40 or 1.59% to 4,883.15. Among the Sensex 30 stocks, 24 rose and 6 fell.

On the BSE trading, 1,725 stocks advanced, 988 declined and 92 were unchanged. Realty, metal and IT stocks led gains. Reliance Industries edged higher.

Rupee edged higher 34 paisa to Rs. 47.36 against one dollar.

The government will pay brokers 0.35% and 0.15% as fees for the shares they sell to retail investors and high net-worth individuals in an effort to have wider participation in the stock sales of state-run companies.

The government is seeking to garner 40,000 crore rupees from these asset sales in an effort to reduce its debt burden and to stem the expected asset outflows from India.

Mahindra & Mahindra Ltd, India’s biggest sport utility vehicle maker agreed to buy a controlling stake in Reva Electric Car Co. to acquire technology to build alternative energy based vehicles.

Mahindra will acquire 55% stock from Reva founders with about $10 million of new shares according to a statement filed by the company to the Bombay Stock Exchange today.

Singapore-based Sembcorp Utilities acquired 49% stake in the Rs 1,042 crore Thermal Powertech Corp India. The company plans to build 1,320 MW thermal plant at Krishnapatnam in Andhra Pradesh.

The ongoing bidding for broadband wireless access spectrum also seems to be heading for an exciting finish.

On the second day of the auction, the pan-India license touched Rs 3,200 crore against the reserve price of Rs 1,750 crore.

Coolpad Communications, the Indian joint venture of Hong Kong-listed Wireless Technologies on Tuesday rolled out its first touch screen CDMA phone S100 in Chennai. The handset will be retailed through Reliance World Stores. The company has already introduced its dual mode handsets in the market.

NHPC net profit in fiscal year ending in March rose 83.6% to Rs 2175.56 crore compared to previous fiscal year, according to Managing Director S.K Garg in New Delhi on Tuesday.

Gainers & Losers

Bajaj Electricals Limited fell 1.8% to Rs 207.65 and the provider of lighting and consumer durables said fourth quarter sales rose 19% to Rs 784.2 crore from Rs 657.2 crore a year ago. Net profit for the quarter fell 21% to Rs 37.5 crore compared to net profit of Rs 47.5 crore e a year ago.

Bank of Baroda rose 1.1% to Rs 683.05 after the bank said full year net interest income rose 15.4% to Rs 6,211.5 crore from Rs 5,380.2 crore a year ago. Net profit for the year rose 33% to Rs 3,179.3 crore or compared to net profit of Rs 2,384.1 crore a year ago.

Bharat Heavy Electricals Limited fell 0.3% to Rs 2,254.90 after the engineering and manufacturing company said fourth quarter sales rose 29% to Rs 13,559 crore from Rs 10,540 crore a year ago. Net profit for the quarter rose 42% to Rs 1,909 crore compared to net profit of Rs 1,347 crore a year ago.

Cadila Healthcare Limited rose 3.0% to Rs 626.35 after the firm received milestone payment of Rs 47.36 crore from Abbott Laboratories as a part of a drug license and supply agreement signed earlier this month.

Cairn India Limited advanced 3.4% to Rs 281.05 as crude oil prices climbed toward $70 per barrel.

City Union Bank Limited rose 1.8% to Rs 32.45 after the bank said fourth quarter net interest income rose 46.6% to Rs 87.5 crore from Rs 59.7 crore a year ago. Net profit for the quarter rose 33% to Rs 34.8 crore compared to net profit of Rs 26.1 crore a year ago.

Hindustan Construction Company Limited added 1.8% to Rs 104.20 after the company secured an order of Rs 887.92 crore from Nuclear Power Corporation of India for civil works for the main plant of Rajasthan Atomic Power Project.

Hindustan Petroleum Corporation Limited rose 0.7% to Rs 338.80 after the integrated oil refining and marketing company said fourth quarter sales rose 24.5% to Rs 31,321.3 crore from Rs 25,154.2 crore a year ago. Net profit for the quarter fell 85% to Rs 757.5 crore compared to net profit of Rs 5,104 crore a year ago.

Hindustan Unilever Limited fell 0.2% to Rs 229.50. Sara Lee personal care and European laundry brands are maintaining strong levels of growth and Unilever continues to believe the acquisition deal will play a significant role in accelerating its growth in Western Europe.

JAI Corp Limited rose 3.0% to Rs 223.75 after the company reported fourth quarter net profit of Rs 17.90 crore compared to net loss of Rs 26.39 crore a year ago.

JM Financial Limited gained 5.1% to Rs 31.70 after the finance company said full year quarter sales rose 29% to Rs 598 crore from Rs 464 crore a year ago. Net profit for the year rose 44% to Rs 151.6 crore compared to net profit of Rs 105.2 crore a year ago.

Mahindra & Mahindra Limited rose 2.4% to Rs 529.00 after the company bought 55.2% equity in Reva Electric Car Co, by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crores or approximately $10 million into the company.

Nagarjuna Construction Company Limited gained 5.1% to Rs 162.80 after the company reported fourth quarter net profit increased 168.6% to Rs 102.62 crore.

Power Grid Corporation of India Limited rose 1.9% to Rs 103.05 after the company engaged in the transmission of bulk power said full year sales rose 7% to Rs 7,127.5 crore from Rs 6,675.9 crore a year ago. Net profit for the year rose 21% to Rs 2,040.9 crore compared to net profit of Rs 1,690.6 crore a year ago.

Sesa Goa Limited added 3.3% to Rs 320.20 after the stock corrected 20.4% in the preceding six trading sessions.

Tata Tea Limited fell 2.0% to Rs 1,034.00 and the company reported fourth quarter net profit increased 83.6% to Rs 53.72 crore.

Valecha Engineering Limited surged 13.3% to Rs 188.30 and the company announced that it has recently secured highway project at Orissa worth Rs 509.00 crore on BOT basis.