Sensex in India Declines on Earnings Worries; HDFC Net Soars 33%

Devan Biswas
18 Apr, 2011
New York City

Stocks in Mumbai trading turned negative on the earnings worries, high commodities and crude oil prices and weak global sentiment. Ahead of earnings banks were weak. Tata Power inches closer to raise as much as $400 million. HDGF Bank fourth quarter net soared 33% and hiked dividend by 165%.

[R]5:00 PM Mumbai – Stocks in Mumbai trading turned negative on the earnings worries, high commodities and crude oil prices and weak global sentiment. Ahead of earnings banks were weak. Tata Power inches closer to raise as much as $400 million. HDGF Bank fourth quarter net soared 33% and hiked dividend to Rs 16.50 a share.[/R]

Stocks in Mumbai trading opened higher but failed to build on the early gains after one hour of trading. Weak earnings guidance from Infosys and directionless trading in most major markets in Asia hurt the sentiment. Stocks began the slide in the early afternoon and dropped more than 1.5% near close.

The Sensex index in Mumbai trading declined 1.5% 295.65 and Nifty index fell 95.45 to 5,729.10.

Of the 30 stocks in the Sensex, 25 declined and five gained.

The rupee edged higher a fraction to 45.24 to a dollar and gold price for ten grams closed at 22,523 for ten gram. Silver price increased to 1% to 66,270 a kilo.

Stock Movers

Reliance Industries declined 0.9% to Rs 1,008.90 ahead of earnings this Thursday and on the talks that the company will announce a plan to diversify into financial services.

Last week, the petrochemical conglomerate also announced plans to expand its polyester capacity in the next few years to 2.3 million tons.

Tata Power declined 0.3% after the company hired brokers to raise $300 million to $400 million in international bond offering.

State Bank of India declined 1.7% to Rs 2,756.10 after the company appointed Diwakar Gupta as chief financial officer replacing H.G. Contractor.

Software services provider declined for the second day after Infosys guided lower earnings. Infosys declined 3% and TCS dropped 3.2% and Wipro fell 1%.

Jindal Steel & Power declined 1.5% after its subsidiary Jindal Power said net declined 13.7% to Rs 2,001.60 on sales drop of 14.9% to Rs 3,337.73 crore in the latest year ending in March 2011.

IDBI Bank declined 1% after the Ministry of Corporate Affairs approved the amalgamation plan of IDBI Home Finance and IDBI Gilts as one subsidiary of the bank.

After the close, HDFC Bank said net in the fourth quarter ending in March increased 33% to Rs 1,115 crore and increased annual dividend by more than 160% to Rs 16.50 a share.

Hero Honda increased 2.4%.