Fifth Record Close for Sensex in India

123jump.com Staff
24 Jul, 2007
New York City

Sensex in India closed up to a fifth record in a row. The index closed at 15,794, an increase of 0.5%. The earnings report from several companies dominated the trading sentiment. Earnings of Castrol India jumped 31%, Jindal Stainless soared 62%, and that of Indiabulls Financial soared 110%. NTPC and Asia Development Bank are in a joint venture to build a renewable energy plants company. ABG Shipping received order for 12 ships from Thailand based company.

[R]10:00AM New York, 7:30PM Mumbai – Sensex in India climbs on earnings report.[/R]

Sensex rose 62.72 to close at fifth record in a row to 15,794.92 after trading above 15,850, another intra-day high. In the last five sessions the index has gained 505 points. Of the Sensex stocks 21 stocks advanced and 19 declined.

On the broader market 1,776 stocks declined, 901 advanced, and 64 were unchanged. The total turnover on BSE was 5,558 crore rupees, 15% jump from 4,854 crore rupees a day ago.

Gainers

Reliance Energy surged nearly 8% to 769 rupees on the news that the company is in discussion to take a stake in power exchange launched by Multi Commodities Exchange and the National Commodity Derivatives Exchange.

ABG Shipyard jumped 7.7% to 492 rupees after the company received an order from Thailand company to build a 12 vessles of 32,000 DWT size worth 1,460 crore or $360 million.

Satyam Computer Services soared 5% on the news that the company plans to set up a subsidiary in South Africa to serve a large number of potential contracts in the near future.

Modern Dairies jumped 5% to 49.50 rupees after the company board declared one bonus stock for each stock.

Bharat Heavy Electricals jumped 4.58% to 1,846 rupees after trading as high as 1,899 rupees a day after reporting an order of power plant in Haryana. On the news other companies in the sector advanced led by 1.6% increase in Bharat Bijlee, 0.7% rise in Thermax and Crompton Greaves.

NTPC added 3.6% to 163 after reporting a joint venture with Asian Development Bank to produce renewable energy. NTPC along with the various Indian government agencies will have 50% stake in the venture and ADB will acquire 20% stake at a later date.

Earnings News

Castrol India, lubricant oil maker, jumped 11% to 280 rupees on the second quarter earnings gain of 31% to 66 crore rupees.

Jindal Stainless firmed 5.2% to 163 rupees after reporting earnings gain of 62% to 82 crore rupees on sales gain of 40% to 1,196 crore rupees in the first quarter.

Indiabulls Financial Services declined 3.6% to 530 rupees on first quarter earnings of 166 crore rupees compared to 77 crore rupees from a year ago.

Bharat Forge declined 1.3% to 301 rupees on first quarter earnings increase of 26% to 64.8 crore rupees.

Dr Reddy’s gained 0.7% to 672 rupees after reporting earnings growth of 30.5% to 182 crore rupees in the first quarter.

Hero Honda Motors earnings fell 20% to 190 crore rupees on sales gain of 3.6% to 2,448 crore rupees. The stock of Indian unit of Japan based Honda Motor has declined 1.4% to 695 rupees.

IPO News

IPO of Housing Development and Infrastructure closed at 558.6 rupees. The company offering was oversubscribed by 6.6 times. The stock jumped 11% from its offer price of 500 rupees and reached intra-day high of 567 rupees.