Reliance Ind and Energy Profit Gains

123jump.com Staff
17 Jan, 2008
New York City

Stocks in India fell for the fourth day in a row. Ssensex index declined 0.8% or 167.30 to 19,700.82. Reliance Industries fell 3% after it reported 162% rise in net income on 23% rise in net sales. Reliance Energy fell 2.4% to 2,212 after it reported proft rise of 50% on 1.8% rise in sales. TCS fell 2.3% after it posted 7% increase in profit.

[R]8:00AM New York, 6:30PM Mumbai - Sensex declined, Reliance Industries Limited, Reliance Energy, and TCS profits surges. /R

Stock market in India on Thursday declined for the fourth time in a row, pulled by declines in large cap companies.

Reliance Industries fell after reporting December 2007 third quarter results and ICICI Bank also declined.

The 30-share BSE Sensex fell 0.8% or 167.29 to 19,700.82. The broader CNX S&P Nifty lost 0.4% or 22.55 to 5913.20.

On the BSE, 2,003 shares advanced 833 shares fell, and 41 shares remained unchanged. Of the index stocks, 13 gained while the rest declined.

Turnover on the BSE was at 8,423 crore rupees and revenue on the National Stock Exchange stood at 20,510 crore rupees.

Reliance Industries was the most active stock on the BSE with a turnover of 472.55 crore rupees. Reliance Natural Resources, Reliance Energy, Reliance Capital and Himachal Futuristic Communications were also active.

Fuel prices are likely to go up today. Petroleum Secretary M S Srinivasan said a change on fuel prices was likely after the Group of Ministers meet later during the day.

He said the ministry has sought duty rationalization to contain the impact of surging crude oil prices.

According to news reports, government may hike petrol prices by 4 rupees per litre and diesel by 2 rupees per litre.

Reliance Industries lost 3.3% to 2,996.25 rupees after the company reported 162.22% increase in net profit to 8,079 crore rupees on 23.01% increase in total income to 34,831 crore rupees during the third quarter of December 2007.

Ambuja Cements slipped 3.9% to 130.8 rupees, DLF fell 3.7% to 1,085.75 rupees, Ranbaxy Laboratories shed 2.9% to 367.90 rupees and Satyam Computers lost 2% to 372.45 rupees.

ITC soared 4% to 217.1 rupees, Grasim Industries climbed 3.05% to 3,360 rupees, Maruti Suzuki surged 2.8% to 867.3 rupees, Larsen and Toubro climbed 2.2% to 4,077.7 rupees and Cipla rose 1.8% to 209 rupees.

ICICI Bank lost 3.5% to 1321.8 rupees. HDFC Bank declined 1.7% to 1647.1 rupees.

Indian Oil Corporation slipped 1.7% to 656.75 rupees and Reliance Petroleum fell 0.8% to 219.3 rupees.

Reliance Energy fell 2.38% to 2212.70 after the company reported 50.02% rise in net profit to 301.6 crore rupees on 1.81% increase in total income to 1,853.41 crore rupees during the third quarter of December 2007.

Reliance Power initial public offering is over-subscribed by 20.84 times a day before the end of subscription period. Reliance Energy controlled by billionaire Anil Ambani will have 45% equity in Reliance Power after the offering.

TCS fell 2.3% to 922.65 rupees. The company posted recorded 6.7% rise in net profit to 1,331 crore rupees during the third quarter of December 2007 over the third quarter of September 2007.


[R]5:00AM New York, 7:00PM Tokyo - Tokyo rebounds 2.07% after four days of decline.[/R]

Stocks in Japan gained on bargain hunting after the Nikkei 225 index fell below 14,000.

In Tokyo trading Nikkei 225 reversed a four day 7.5% slump to close up 2.07% or 278.94 to 13,783, while the broader Topix Index soared 27.21 to 1,329.58.

In the first section of the Tokyo Stock Exchange 11.7 billion shares valued at 1.3 trillion yen changed hands and in the second section 365.8 million shares worth 4.2 billion yen were traded.

Of the Nikkei 225 stocks 184 gained, 35 declined, and 6 were unchanged.

Kyodo news online reported today that the Bank of Japan said yesterday in its quarterly survey an increasing number of consumers are losing confidence in the economy as wage increases fail to rise with the inflation.

The U.S. Federal Reserve Board said yesterday in a statement it had sanctioned Japanese online bank eBank Corporation’s application to set up a office in San Francisco.

The company will explore development of technology for Internet banking and invest in the U.S.

Bloomberg news reported today that according to Morgan Stanley prices the risk of Japanese companies defaulting on their debt rose to a record today. The Markit iTraxx Japan Series 8 Index rose by 2 basis points to 56.5 basis points.

Kyodo news also reported today that Nippon Paper Group President Masatomo Nakamura said he will resign after paper and pulp makers said they used less than the required volume of recycled paper in its products since 1992.

Of the Nikkei 225 index shares Shimizu Corporation led advancers with a rise of 8.8% followed by rises in Sumco Corporation of 8.48%, in Fanuc Limited of 8.43%, in Sekusui House of 8.30%, and in Taisei Corporation of 7.96%.

Realty stocks gained on Nikkei news reports that January construction data will show indications for a rebound in housing market. Mitsubishi Estate Company rose 6.99% and Mitsui Fudosan jumped 6.23%.

Exporters advanced after yen weakened to 107.12 from 105.92 yesterday against the dollar. Sony Corporation rose 2.72%, Toyota Motor Corporation soared 3.01% and Honda Motor Corporation climbed 3.87%.

Sharp gained after Goldman Sachs increased its recommendation on the stock to “buy” from “hold” on expectations that the demand for flat display panels will increase.

The company has also agreed to sell 700,000 display panels this year to high–definition TV maker Syntax-Brillian.

J Front Retailing led declining Nikkei 225 stocks with a drop of 5.15% followed by losses in Kao Corporation of 4.97%, in Daiichi Sankyo of 3.94%, in Toyota Tsuho of 3.63%, and in Daiwa Securities Group of 2.93%.

Retail stocks declined after the Bank of Japan said the consumer confidence in the economy had plummeted.

Paper and pulp companies fell after Nippon Paper Group President Masatomo Nakamura said he will resign. Nippon Paper Group shed 2.93%, Hokuetsu slumped 1.93%, and Oji Paper Group declined 1.80%.

The Japan Times reported today All Nippon Airways Company will hike regional airfares by 9% or 2,100 yen on average starting on April 1 to cover rising fuel costs.

Government is considering raising the price of wheat sold to domestic floor millers by 30% from April. Yamazaki Baking fell sharply after the talks of price hike.

In Tokyo Nikkei 225 Index closed higher 278.94 or 2.07% to 13,783.45, in Hong Kong Hang Seng index increased 664.13 or 2.72% closed to 25,114.98, in Australia ASX 200 index lower 13.60 or 0.23% to close 5,796.10.

In South Korea Kospi Index increased 18.58 or 1.09% to close at 1,723.55, in Thailand SET index closed higher 17.45 or 2.26% to 791.25, and Indonesia JSE Index edged increased 56.97 or 2.20% to 2,649.28. Sensex index in India decreased 167.29 or 0.84% to 19,700.82.