India Stocks Struggle; Bajaj Auto Bajaj Finserv Net Soar, RIL Falls

Devan Biswas
18 May, 2011
New York City

Stocks in Mumbai traded sideways as investors digested rising earnings from Bajaj Auto and Bajaj Finserv. However, market was unnerved after the State Bank of India reported 99% drop in earnings. Reliance Industries fell after a report indicated gas production may not increase for three more years.

[R]4:45 PM Mumbai – Stocks in Mumbai traded sideways as investors digested rising earnings from Bajaj Auto and Bajaj Finserv. However, market was unnerved after the State Bank of India reported 99% drop in earnings. Reliance Industries fell after a report indicated gas production may not increase for three more years.[/R]

The Sensex index declined 51.15 to 18,086.20 and Nifty index dropped 18.35 to 5,420.60.

The rupee gained 3 paisa to close at 45.37 against one dollar and ten grams of gold increased 0.6% to Rs 22,840. Silver price for one kilo gained 2.7% to Rs 55,108.

Stock Movers

Bajaj Auto declined 0.2% to Rs 1,305 after fourth quarter sales increased 25% to Rs 4,301 crore and net income soared 163% to Rs 1,400 crore.

Reliance Industries declined 1.5% to Rs 906.40 on the reports that the company may not be able to increase its production for the next three years at its natural gas fields in the eastern offshore Krishna Godavari block.

The oil ministry rejected the company plan to assemble a team of global experts before drill more wells and asked the company to proceed with the drilling of two wells by June and nine wells by March 2012.

HT Media increased 2.5% to Rs 160.25 after the company said net sales increased 25% to Rs 467.17 crore and net rose 11.9% to Rs 52.94 crore.

Revenues at print publications increased 20% to Rs 363.50 crore and circulation revenues increased 9% to R 46.90 crore. Revenues from radio segment increased 81% to Rs 25 crore.

Bajaj Finserv soared 6% to Rs 525.35 after net income in the fourth quarter increased 101% to Rs 872 crore and net sales surged 119.5% to Rs 1,456.7 crore. The company also increased the dividend 25% to Rs 1.25 a share.

eClerx Services soared 5.5% to Rs 743.90 after net profit increased 22% to Rs 29.53 crore and net sales rose 34% to Rs 95.54 crore in the fourth quarter.

Varun Shipping increased 5% to Rs 28.20 core after the company received orders from Brazil controlled Petrobras for the construction of three anchor handling and towing supply vessels.

Coal India dropped 5.5% to Rs 374 after power generating companies ask government to stop the spot sale of power and prefer the steady supply of coal from the state controlled company.

State Bank of India declined 2.5% and extended loss for the second day after company net dropped 99% and non-performing loans surged 49%.