Sensex in India Up 7%

Elena
21 Apr, 2006
Mumbai

Sensex came under heavy selling pressure in the morning trading only to lose 160 points at mid-day. The index staged a slow recovery in the last 30 minutes of trading to close 30 points lower. Sensex gained 7% for the week and amid increasing volatile trading.

[R]10:30AM Sensex closed above 12,000 and up 7% for the week.[/R]
Sensex closed at 12,030 down 9 points and gained 7% for the week. Volatile trading, rising metals prices and profits of software export companies and mutual funds investments all contributed to the positive sentiment towards the market. Market sentiment also improved as rating agencies raises the debt rating for India and Reserve Bank left the short-term interest rate unchanged.

After rising more than 9% in yesterady’s trading Reliance Industries dropped Rs 20 to close at Rs. 974 on trading volume of 3.3 million shares. Hindustan Lever, ITC and NTPC were other volume leaders with more than one million shares changing hands. Reliance Communication Ventures, Hindalco and Satyam Computers traded more than four million shares. Satyam closed lower at Rs. 808 on earnings guidance of 18% to 20% for the year disappointing the market. Mahanagr telecom was the most actively traded stock on the exchage with trading volume of 6.37 million shares and closed at Rs. 210. Tata Steel closed Rs. 654 up Rs. 8 after rising 6% on Thursday and Tata Motors closed at Rs. 977 after rising 3% in previous session. Tata Motors had faced volatile trading in the last ten days of trading on rising price of petrol and crude oil.


[R] 9:45AM Stocks opened in the positive.[/R]
The major U.S. equity indices advanced at the start of trading on Friday. The early strength resulted from positive sentiment generated by strong earnings from Google. and 3M Co. which overshadowed concerns about another record for oil prices. A rebound by gold stocks also contributed to the upward trend. Gold stocks recovered after sharp declines yesterday after the price of the precious metal regained some ground. Energy stocks also benefited from bargain hunting, despite weakness in oil price. Crude for June delivery was down $0.55 at $73.14 a barrel. Among stocks, SanDisk Corp. ((SNDK)) dropped 6% after reporting Q1 profit fell almost 47% to 17 cents a share, on $623 million in revenue, blaming acquisition of Matrix Semiconductor and compensation expenses. Getty Images ((GYI)) slipped 11% after Piper Jeffray and Bear Stearns downgraded the company. The provider of stock images reported Q1 earnings rose 15% to 61 cents a share on 13% revenue growth. Satyam Computer Services ((SAY)) reported 36% profit jump in Q4, but the stock fell 9% on disappointing Q1 sales growth target of around 4%. In the first hour of trading, the Dow Jones industrial average gained 37.94, or 0.33%. The Standard & Poor''''s 500 index was up 3.76, or 0.29%, and the Nasdaq composite index slipped 1.47, or 0.06%. Bonds rebounded slightly, with the yield on the 10-year Treasury note falling to 5.01% from 5.04% late Thursday.

[R]9:00 AM Stock futures indicated a positive opening on Google.[/R]
U.S. stock futures pointed to a higher opening, following a mixed performance on Thursday. The Dow finished at a six-year high, lifted by General Motors which reported a quarterly loss but much narrower than the loss a year ago. The Nasdaq finished in the red on weakness among tech stocks with eBay and Juniper networks falling notably down on disappointing guidance. On Friday, investors are expected to focus their attention largely on earnings reports as no economic news is due out today. S&P 500 futures were up 2.60 points, above fair value. Dow Jones industrial average futures were up 16 points and Nasdaq 100 futures rose 4.50 points.

Google ((GOOG)) was one of the strongest drivers in pre-market trading after reporting better than expected earnings growth. Google ((GOOG)) reported 60% earnings jump for Q1, citing revenue growth of 79%. Earnings for the quarter came in at $1.95 vs. $1.29 a year ago on gross revenue of $2.29 billion. Google generated 58% of sales from ads on its own site and 41% from its advertising partners. Google said that the international revenue accounted for 40% of revenue with the UK revenue forming 15% and AdSense revenue rose 59% in the quarter. The company reported net cash position at the end of the quarter at $8.4 billion and net cash from operating activities were at $825 million approximately 36% of revenue. This net cash balance does not include $2.2 billion from recent public offering and $1 billion payment to be made for the AOL deal.

Crude oil prices hovered over $73 on concerns about Iran’s nuclear program and declining gasoline stocks. Light sweet crude June delivery climbed to $73.30 a barrel. Gasoline fell 3 cents to $2.1870 a gallon, while heating oil lost 2 cents to $2.1870. Natural gas dropped 11 cents to $7.945 per 1,000 cubic feet. London Brent traded at $72.52. European gold further extended gains over $600. Gold jumped $4.9 to $628 per ounce on the Nymex. Copper rose 4 cents to $3.005 a pound. Silver dropped 12 cents to $12.40. The U.S. dollar traded higher vs. major currencies. The euro traded at $1.2349, down from $1.2380. The dollar bought 117.55 yen, up from 117.28. The British pound was quoted at $1.7831,down from $1.7915.

McDonald''s Corp, ((MCD)), fast-food restaurant operator, reported that Q1 profit dropped to 49 cents a share, from 56 cents a year earlier, matching analysts'' estimate. Revenue in Q1 advanced to $5.1 billion from $4.8 billion in Q1 last year. Global same-store sales advanced 5.2%.

Royal Caribbean Cruises, ((RCL)), travel firm, reported Q1 net income of 55 cents a share, down from 64 cents a share in the year-earlier period on decline revenue to $1.1 billion from $1.2 billion. Q1 included a net gain of 16 cents a share for a previously disclosed partial settlement of a lawsuit. The company topped analysts’ forecasts for earnings of 48 cents a share. The company expects Q2 earnings of 50-55 cents a share on higher fuel costs, down from analyst target of 73 cents a share.

Arch Coal Inc, ((ACI)), coal company, reported Q1 net income of 84 cents a share, up from 7 cents a share in the year-ago period on 6% revenue growth, topping analysts’ forecasts for earnings 58 cents a share. Arch lifted the bottom end of its prior earnings outlook to between $3.75 and $4.25 a share.

Sensient Technologies Corp., ((SXT)), maker of colors and flavors for food, reported Q1 net income of 34 cents a share, up 22% from 27 cents a share in the year-earlier period, topping analyst estimate of 32 cents a share. Revenue grew 5% to $263 million. Sensient added it expects 2006 earnings per share to be between $1.35 and $1.40 a share, topping analyst view of $1.28 a share.

McDonald''s Corp, ((MCD)), fast-food restaurant operator, reported that Q1 profit dropped to 49 cents a share, from 56 cents a year earlier, matching analysts'' estimate. Revenue in Q1 advanced to $5.1 billion from $4.8 billion in Q1 last year. Global same-store sales advanced 5.2%.

Royal Caribbean Cruises, ((RCL)), travel firm, reported Q1 net income of 55 cents a share, down from 64 cents a share in the year-earlier period on decline revenue to $1.1 billion from $1.2 billion. Q1 included a net gain of 16 cents a share for a previously disclosed partial settlement of a lawsuit. The company topped analysts’ forecasts for earnings of 48 cents a share. The company expects Q2 earnings of 50-55 cents a share on higher fuel costs, down from analyst target of 73 cents a share.

Ingersoll-Rand Ltd., ((IR)), diversified industrial manufacturer, reported that Q1 profit advanced to 76 cents a share, from 64 cents a year earlier on revenue growth to $2.71 billion from $2.46 billion in Q1 last year. The company topped analysts’ forecast earnings of 72 cents a share. The company expects Q2 earnings at 90 cents to 95 cents a share, bracketing analysts'' view for 93 cents.

3M Co, ((MMM)), diversified industrial and consumer products maker, reported Q1 net income of $1.17 a share, up vs. 97 cents a share in the year-ago period, topping analysts’ forecasts for earnings of $1.14 a share. 3M added that sales grew 8.3% in Q1. The company raised its sales outlook and its earnings forecast to $4.55 to $4.65 a share from $4.45 to $4.60 a share in 2006.

OptionsXpress, ((OXPS)), options broker, reported Q1 net income of 29 cents a share, nearly double the 16 cents a share profit a year-ago on 64% revenue growth, matching analysts’ forecasts for earnings of 29 cents a share.

Ford Motor, ((F)), automaker, reported a Q1 loss of 64 cents a share, vs. earnings of 60 cents a share in the year-ago period on 9% revenue decline due to a 6% decline automotive sales. If not for non-recurring items, earnings would have been 24 cents a share. The company beat analysts’ views for earnings of 25 cents a share.

Prosperity Bancshares Inc, ((PRSP)), loans and deposit products services company, reported Q1 net income of 46 cents a share, up from 43 cents compared with the same period the previous year. Net interest income totaled $29.2 million from $24.5 million, as average earning assets advanced 19%. Q1 loans topped $1.56 billion, up 4.1% from the prior date period. The company was in line with analysts’ estimates.

RadioShack Corp, ((RSH)), consumer electronics retailer, posted Q1 net income of 6 cents a share, down from 34 cents a share a year earlier. The company added that write-downs in connection with its turnaround plan cut its pre-tax income by around $10 million. Sales advanced 3% to $1.16 billion. The company also added that weaker-than-expected wireless sales hurt its Q1 results. RadioShack missed analyst estimate for earnings of 17 cents a share. Same-store sales for Q1 shed 1% from year-earlier levels. Gross profit margins for Q1 dropped to 48.3% from 50.4% a year ago, on account of an unfavorable merchandise mix, more promotional activity and higher-than-average sales growth of its lower margin kiosk channel.

Schlumberger Ltd, ((SLB)), oilfield-services company, reported that Q1 net income advanced 38% to 59 cents a share, from 43 cents in the year-ago period on 34% higher revenue. Earnings before charges and credits were 59 cents against 32 cents. The company beat analyst estimate of 55 cents. Both more drilling services and higher pricing drove Q1 results, the company added.

[R]8:15AM European averages advanced at mid-day.[/R]
European markets advanced at mid-day trading, supported by six-year-high close of the Dow Jones index which offset disappointing news from Sweden’s Ericsson and Britain’s WPP. The German DAX 30 gained 0.5%, the French CAC 40 rose 0.5%, while London’s FTSE 100 climbed 0.6%, lifted gains for the second biggest department store Debenhams PLC. The company announced plans to return to the LSE by means of initial public offering to raise $125 billion amid hard trading conditions in the retail sector.


[R]7:45AM Asian markets closed mixed.[/R]
Asian-Pacific benchmarks closed mixed, following a decline in commodities prices and optimism about strong corporate releases which boosted key export-related stocks. South Korea’s Kospi led advancers, reaching a historic high with support provided by tech conglomerates. The Nikkei closed higher by 0.5% to 17,403.96, lifted by strength in blue-chip stocks like Sony, up 3.5%, Canon, higher by 4.6%, Honda Motor, up 4.6%, and Nissan Motor, up 2.2%. The Japanese index erased some of the early gains on partial skepticism about strong earnings. China Shanghai surged to 2.2%, led by Sinopec. Among regional decliners, Hong Kong’s Hang Seng lost 0.2% as profit taking in China-related stocks offset a rise in property shares. Taiwan Weighted index was down 0.1% as investors locked in gains. Auistralia’s All Ordinaries dropped 0.5%, dragged down by metals stocks Rio Tinto and BHP Billiton.