Nestle, HDFC, Reliance Comm Earnings Rise

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

Stocks in India closed lower ahead of the rate decision in the U.S. The U.S. Fed lowered its key rate by 0.25% to 2% and signaled that future cuts may not be necessary. Reliance Communication earnings surged 71% on 32% rise sales. HDFC declined after it reported 40% rise in income on 33% rise in revenue. Nestle India earnings gained 48% and Videocon Industries profit gained 8%.

[R]10:00AM New York, 7:30PM Mumbai – Mumbai stocks decline ahead of the rate cut in the U.S. Net profit at Reliance Communications, Nestle India, HDFC and Videocon rises.[/R]

Market Sentiment

India market fell on Wednesday as profit taking pulled the market lower. The U.S. Fed rate cut mattered to investors, more than 30% of stocks in India are held by international investors. Large cap companies Reliance Industries and ICICI Bank lost the ground.

At close, the 30-share BSE Sensex declined 0.5% or 91.15 at 17,287.31. On the National Stock Exchange Nifty fell 0.6% or 29.6 at 5,165.90.

Banks led by ICICI Bank declined. Realty, oil and gas and consumer durables stocks fell. However, auto, software and consumer stocks gained.

Of the BSE traded shares, 1,296 stocks gained, 1,397 stocks declined while 75 remained unchanged.

Turnover

Daily turnover on the BSE stood at 6,856 crore rupees and 16,448 crore rupees on the NSE.

Sesa Goa was the most active stock on the BSE with the highest turnover of 258.69 crore rupees followed by Reliance Petroleum, Reliance Communications, Titagarh Wagons and Reliance Capital.

Gainers and Decliners

Titan Industries fell 4.5% to 1,244.30 rupees and Asian Star Company declined 1.3% to 1,275.30 rupees.

DLF fell 2.8% to 705.25 rupees, Unitech lost 2.2% to 310.40 rupees and Indiabulls Real Estate fell 1.7% to 547.75 rupees.

ICICI Bank declined 2.4 % to 879.40 rupees, HDFC Bank declined 2.1% to 1,514.85 rupees and, State Bank of India was down 1% to 1,776.35 rupees.

ITC gained 3.6% to 219.80 rupees and Tata Tea was up 3.7% to 912.25 rupees.

Hindustan Unilever remained unchanged at 250.65 rupees.

Mahindra & Mahindra gained 4.3% to 670.40 rupees, Maruti Suzuki India surged 1.5% to 741.90 rupees, Tata Motors rose 3.5% to 662.20 rupees and Hero Honda Motor fell 1.6% to 848 rupees.

Wipro closed up 2% to 488.60 rupees, Infosys gained 0.2% to 1,753.75 rupees Tata Consultancy Services rose 1% to 919.55 rupees and Satyam Computer Services surged 0.6% to 482.20 rupees.

Grasim Industries closed down 2.8% to 2,402.75, Hindalco Industries fell 2.3% to 193.60 rupees and ACC declined.

NTPC rose 1.1% to 196.75 rupees on the news that its board had approved spending 487 crore rupees on renovating Auraiya gas power station in Uttar Pradesh.

Reliance Update

Reliance Communications rose 0.9% to 579.75 rupees. The company reported consolidated net profit rose 70.5% to 5,401.14 crore rupees on 31.79% rise in total revenue to 19,067.76 crore rupees in the year ended March 2008 over the year ended March 2007.

Reliance Industries declined 1.4% to 2,614.85 rupees.

Earnings News

HDFC declined 2.7% to 2,804.80 rupees. The company reported net profit rose 39.64% to 768.12 crore rupees on 33.82% rise in total income to 2,320.21 crore rupees in fourth quarter ended March 2008 over the same quarter last year.

Nestle India jumped 9.2% to 1,774 rupees on reporting 47.7% surge in net profit to 160.15 crore rupees in the first quarter ended March 2008 over the same quarter last year.

Videocon Industries lost 1.6% to 374.20 rupees. The company reported its net profit increased 8.6% to 251.22 crore rupees on 15.69% rise in total income to 2538.78 crore rupees in the fourth quarter over the same quarter a year earlier.