India Stocks Follow Profits at Adani, Tata Steel

Chandrasekhar Atreya
13 Aug, 2010
New York City

Stocks in Mumbai gained led after better-than-expected profits from Tata Steel and Adani. Bank of India plans to raise capital to increase its regulatory capital requirements. India gives two more weeks to Research in Motion Ltd to resolve security issues. Darjeeling tea prices surge 50%.

[R]5:00 PM Mumbai – Stocks in Mumbai gained led after better-than-expected profits from Tata Steel and Adani. Bank of India plans to raise capital to increase its regulatory capital requirements. India gives two more weeks to Research in Motion Ltd to resolve security issues. Darjeeling tea prices surge 50%.[/R]

Stocks in India traded higher, extending gains for a second week after Tata Steel and Adani Enterprises reported better-than-expected profits.

The Sensex Index gained 0.52% or 93.13 to close at 18,167.03. The CNX Nifty Index on the National Stock Exchange gained 0.7% to 5,453.65.

Tata Steel Ltd first quarter profit rose 102% from a year ago to Rs 1,579 crore. The company posted 17% rise in sales at Rs 6,471 crore for the first quarter ended June 30.

Net income, including U.K. unit Corus was Rs 1,830 crore in the three months ended June 30 compared with a loss of Rs 2,210 crore in the prior year, the Mumbai–based company said Wednesday.

Bank of India plans to raise Rs 10,286 crore selling bonds and shares. Debt will be issued to increase its Tier-II and upper Tier-II capital, the company said in a filing to the Bombay Stock Exchange. Bonds without specific maturities and tenors above 10 years are used by Indian banks to increase their Tier-I capital without changing shareholding patterns.

India gave Research in Motion Ltd time till August 31 to resolve the government concerns regarding the Internet and data services access from its smart-phone, a Home Ministry official said Wednesday.

Credit Suisse received banking license in India a day after RBI said it will grant new licenses.

Rainfall in India was recorded as 4% below average since June 1 says Indian Meteorological Department.

Dynamatic Technologies Ltd plans to invest Rs 9,000 crore to tap rising demand for defense equipment and automobiles in India. Starting June, the company became the only supplier of beams used in Airbus A-320 single-aisle planes.

The company is focusing on aerospace as revenue from that segment surged 10-fold, CEO Udayant Malhoutra said in an interview in Bangalore today.

The price of Darjeeling Tea, one of the most sought after tea flavors, jumped as much as 50% from a year ago as drought conditions followed by excessive rains dwindled supplies.

Arvind Ltd, a supplier of denim to Levi Strauss & Co and Gap Inc, said it expects annual sales to jump as much as 23.5% as buyers in the U.S. and India spend more on clothes according to Chairman and Managing Director Sanjay Lalbhai.

Group sales at the company may climb to Rs 4,000 crore in the year to March 2011, from Rs 3,240 crore a year ago, Lalbhai said in an interview Thursday.

Adani Enterprises’ first quarter net rises nearly 218% to Rs 407.5 crore from Rs 128 crore in the prior year before the merger with Mundra port.

India will go after any company, including Google and Skype, after cracking down on BlackBerry in its efforts to keep the world’s fastest growing mobile market safe from militants and cyber spying, a government source said Friday.

Gainers & Losers

Adani Enterprises Limited increased 4.3% to Rs 626.00 after the commodity export company reported first quarter consolidated net profit rose 218% to Rs 407 crore.

ABG Infralogistics Limited rose 2% to Rs 201.35 after the crane service provider received a contract from Tuticorin Port Trust for developing North Cargo Berth-II for handling bulk cargoes at Tuticorin port.

Adhunik Metaliks Limited rose 1.9% to Rs 117.00 after the steel company said first quarter consolidated net profit increased 208.5% to Rs 56.43 crore.

BEML Limited gained 1.7% to Rs 1,008.65 after the rail coaches, spare parts and mining equipment maker reported first quarter net profit soared 171.7% to Rs 14.40 crore.

BF Utilities Limited surged 4.5% to Rs 932.95 after the infrastructure development company said its unit Nandi Infrastructure Corridor Enterprise will sell a 10% stake in Phase I of the 164 kilometer Bangalore-Mysore toll way project to a JP Morgan-managed private equity fund.

Cairn India Limited soared 4.3% to Rs 355.45 after Rajasthan oil field operator reported Vedanta Resources initiated talks with UK-based parent Cairn Energy to buy a stake in the Indian unit.

Deccan Chronicle Holdings Limited increased 2.2% to Rs 134.85 after the newspaper and magazine company said first quarter net profit rose 18.4% to Rs 91.23 crore.

The Dhanalakshmi Bank Limited rose 0.05% to Rs 186.50 after the bank said first quarter net profit fell 40.4% to Rs 6.03 crore.

Hindustan Copper Limited rose 1.2% to Rs 452.60 after the refined copper producer reported first quarter net profit soared to Rs 26.20 crore.

Info Edge (India) Ltd surged 9% to Rs 1,120.35 after the online classifieds company reported gains for the third consecutive day, boosted by a 1:1 bonus issue.

Jindal Drilling Industries Limited increased 2.3% to Rs 496.95 after the drilling and related services company reported first quarter net profit surged 66.9% to Rs 27.73 crore.

Jaihind Projects Limited increased 3.6% to Rs 304.00 after company secured an order worth Rs 10.07 crore from Indian Oil Corporation for combined station works for Chennai-Bangalore pipeline augmentation project.

Munjal Auto Industries Limited gained 3.2% to Rs 135.80 after the auto component manufacturing company reported first quarter net profit rose 28.2% to Rs 4.36 crore.

Patni Computer Systems Limited soared 8.3% to Rs 516.85 after company’s board at a meeting held today declared a special interim dividend of Rs 63 per share for the year ending December 2010.

Patel Engineering Ltd. rose 0.4% to Rs 412.05 after the infrastructure company said first quarter consolidated net profit rose 10.2% to Rs 40.07 crore.

Sterlite Industries (India) Limited plunged 4.2% to Rs 160.70 after the non-ferrous metals and mining company’s American depository receipt declined 4.71% to $13.77 on the New York Stock Exchange on August 12.

Subex Limited rose 0.6% to Rs 55.55 after the provider of operations support system solutions for telecom application companies said a consortium with IBM India secured a multi-million dollar order from Idea Cellular, the pan-India GSM mobile services operator.

Tata Steel Limited rose 1.3% to Rs 527.05 after the diversified steel producer turned to profit in first quarter, 2010 as demand rose from automobile and construction companies in India and Europe.