Bharti Airtel, Idea Cellular Lift Stocks

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

Stocks in India closed higher on earnings and despite rising inflation. Bharti Airtel gained 9% to 920.10 rupees and led gainers in the Sensex index. The company reported 39.3% rise in net profit to 1,792.30 crore rupees on 41.8% increase net revenues to 7,446.82 crore rupees in the fourth quarter. Ideal Cellular rose 4.7% to 107.80 rupees. The company posted 44.6% rise in net profit to 278.20 crore rupees on 50.7% increase in net sales to 1,972.40 crore rupees in the fourth quarter.

[R]10:00AM New York, 7:30PM Mumbai – Earnings from Airtel, Idea Cellular and Ambuja Cement lifted stocks. Inflation surged to a new high.[/R]

Market Sentiment

Stocks in Mumbai closed firm on Friday with the 30-share BSE Sensex gaining 2.4% or 404.90 at 17,125.98. On the National Stock Exchange Index rose 2.2% or 111.85 to close at 5,111.85.

The rally in the market supported a steady build-up of new positions in the derivatives segment on the first day of May 2008 series.

Buoyant corporate results and strong interests in rollovers in derivatives from April contracts to May 2008 contracts and firm global equities helped stocks to recover.

Banking shares rallied despite latest data showing rise in inflation. The wholesale price index based inflation rose to 7.33% for the week ended on 12th April 2008 as compared with 7.14% in the previous week. State bank of India, HDFC Bank and ICICI Bank closed higher.

Among the 30-member Sensex stocks, 21 advanced while 9 shares declined. Of the BSE traded stocks, 1,474 shares fell, 1,242 shares rose while 50 shares remained unchanged.

Turnover

Daily turnover on the BSE stood at 6,012 crore rupees and 14,157 crore rupees of the NSE.

Reliance Natural Resources was the most active stocks on the BSE with the turnover of 354.40 crore rupees followed by Reliance Capital, Bharti Airtel, Reliance Communications and Reliance Industries.

Gainers and Decliners

Bharti Airtel gained 9% to 920.10 rupees and led gainers in the Sensex index.

The company reported 39.3% rise in net profit to 1,792.30 crore rupees on 41.8% increase net revenues to 7,446.82 crore rupees in the fourth quarter ended March 2008 over the same quarter last year.

Ideal Cellular rose 4.7% to 107.80 rupees. The company posted 44.6% rise in net profit to 278.20 crore rupees on 50.7% increase in net sales to 1,972.40 crore rupees in the fourth quarter ended March 2008 over the same quarter a year ago.

State bank of India gained 4.5% to 1,758.55 rupees, HDFC Bank rose 3.3% to 1,494.50 rupees and ICICI Bank surged 4.2% to 913 rupees.

HDFC surged 3.4% to 2,678 rupees and Tata Steel rose 3.4% to 803 rupees.

ACC lost 1.7% to 784.80 rupees and led the decliners in the Sensex index. ACC reported a slight increase of 0.53% in net profit to 357.54 crore rupees on 7.68% increase in total income to 1861.37 crore rupees in the first quarter ended March over the same quarter a year earlier.

Ambuja Cement declined 0.8% to 114.30 rupees after reporting a 42.4% decline in net profit to 326.2 crore rupees on 16.72% rise in net revenues to 1,695.41 crore rupees in the first quarter of 2008 from a year ago.

Jaiprakash Associates fell.32% to 245.65 rupees and Maruti Suzuki India fell 0.8% to 739.90 rupees.

DLF declined 0.9% to 668.55 rupees and Infosys declined 0.7% to 1,682 rupees.

Reliance Update

Reliance Communications surged 8.9% to 580 rupees. According to news reports, the company has acquired 90% stake in UK-based WiMax operator eWave World.

Reliance Communication said it will invest $500 million in eWave to build and acquire WiMax networks in the emerging markets of Asia, Europe, Latin America and Africa.

Reliance Industries was up 1.7% to 2,625.05 rupees. The company has got approval from the government for its oil and gas development plan at a field in its D6 block off the East Coast of Mumbai.

Reliance Industries said the field is estimated to produce 40,000 barrels of oil and 240 to 350 million cubic feet of gas per day from second half of 2008.

Reliance Energy closed up 4.5% to 1,364.80 rupees.