Sixth Gains in Stocks, Reliance, TCS Earnings

123jump.com Staff
22 Apr, 2008
New York City

Reliance Industries fell after it reported 24% rise in earnings to 3,912 crore rupees. The earnings rose on higher crude oil refining margins and higher sale across various chemical segments. Tata Consultancy reported sequential profit decline on a marginal rise in revenue. The information services provider also issued a cautious guidance. TCS fell 10% and led decliners in the Sensex index.

[R]10:00AM New York, 7:30PM Mumbai – Stocks in India gain for the sixth session in a row. Weak local earnings and relative strength in global markets dominated trading.[/R]

Market Sentiment

Stocks in Mumbai trading rallied for the sixth day in a row lifted by stocks in real estate, cement and infrastructure sectors. Reliance industries and TCS fell after reporting earnings.

Strength in international markets and strong earnings also helped the rally with the 30-share BSE Sensex rising 0.3% or 44.54 at 16,783.87 with 18 Sensex shares advanced, 12 shares declined.

On the National Stock Exchange Nifty increased 0.3% or 12.30 at 5,049.30.

Of the BSE traded stocks, 1,563 shares rose, 1,127 shares declined while 57 shares remained unchanged.

IT shares, however faltered after TCS'' earnings disappointed.

Despite the sixth consecutive gains, the markets are expected turn volatile in coming days ahead of the expiry of April 2008 derivative series on Thursday.

According to reports, Nifty rollover from April 2008 series to May 2008 series stood at 34% while market wide rollover was 15% as of Monday.

Turnover

Daily turnover on the BSE amounted to 6,125 crore rupees and *** on the NSE.

Orchid Chemicals was the most active stock on the BSE with the turnover of 355.30 crore rupees followed by Reliance Natural Resources, Reliance Industries, Kiri Dyes, and IFCI.

Gainers and Declines

Jaiprakash Associates increased 6% to 247 rupees and led the advancers in the Sensex index. TCS fell 10.9% to 884 and led the decliners in the Sensex index.

The company reported 5.95% fall in net profit to 1,108.81 crore rupees on 2.23% rise in net sales to 4,942.49 crore rupees in fourth quarter the third quarter in December 2007.

Infosys declined 2.4% to 1,605.30 rupees, Wipro lost 4.1% to 435 rupees and Satyam Computer Services declined 5.4% to 434 rupees.

Reliance Industries declined 1.6% of 2,601.30 rupees. India''s largest oil refiner reported 24% rise in net profit from the previous comparable period to 3,912 crore rupees in the fourth quarter ended March 2008.

Ranbaxy Laboratories lost 2.8% to 485 rupees after the company entered into strategic business alliance with Orchid Chemicals & Pharmaceuticals involving multiple geographies and therapies for both finished dosage formulations and active pharmaceutical ingredients. Orchid Chemicals & Pharmaceuticals shares slipped 1.44% to 245.80 rupees.

Grasim fell 1.9% to 2,595 rupees and Mahindra & Mahindra declined 1.6% to 629.05 rupees.

Bharat Heavy Electricals gained 5.8% to 1,877 rupees on news reports that the company has won orders worth around 2,030 crore rupees for supply and installation at Nabinagar thermal power plant project in Bihar.

Oil and Natural Gas Corporation rose 2.1% to 1,051 rupees.

DLF gained 3.5% to 674 rupees, Indiabulls Real Estate rose 1.7% to 503.90 rupees, Unitech increased 4.9% to 280.90 rupees, Purvankara Projects surged 6.1% to 277 rupees and Ansal Infrastructures climbed 10.6% to 165.60 rupees.

UltraTech Cement Company jumped 6.2% to 820 rupees, ACC gained 2.5% to 820 rupees, Binani Cement surged 5.6% to 86.05 rupees and India Cements gained 3.4% to 193 rupees.

HDFC gained 3.9% to 2,580 rupees, HDFC Bank rose 3.1% to 1,490 rupees, and Larsen & Toubro advanced 2.7% to 2,922 rupees.

New Issues

Kiri Dyes and Chemicals settled with 7% premium on its first day of trading at 158.55 rupees after it priced its share at 150 rupees. The stock debuted at 151 rupees a premium of 0.06% over initial price offer of 150 rupees.