L&T Earnings Surge, Sensex Falls

123jump.com Staff
29 May, 2008
New York City

Sensex index in Mumbai trading declined ahead of the fuel price decision by the government. Sensex index fell 1.3% or 209.11 to 16,316.26. On the NSE the S&P CNX Nifty declined 1.7% or 83.05 at 4835.30. Larsen & Toubro surged 6.6% after it reported revenue rise of 38% and earnings gain of 35% in the quarter ended in March.

[R]5:30PM New York, 4:00PM Mumbai - Government to decide on fuel price increase before end of this week, Sensex declined.[/R]

India market update

Indian benchmark index declined on Thursday ahead of the government''s pending decision to increase fuel prices. Minister of Petroleum and Natural Gas Murli Deora said the government would take a decision on raising fuel prices before end of this week.

International crude oil prices traded at elevated level near $129 a barrel in Asia after hitting a record high of $135 a barrel last week.

The rupee gained 23 paise to 42.73 against one dollar after losing nearly 9% in the last three months.

Market Sentiment

In Mumbai trading, the 30-share BSE Sensex fell 1.3% or 209.11 to 16,316.26. On the NSE the S&P CNX Nifty declined 1.7% or 83.05 at 4835.30.

Of the BSE shares, 1,115 shares advanced, 1,537 shares fell and 109 stocks remained unchanged.

Trading Statistics

Daily turnover on the BSE was recorded at 5,915 crore rupees and on the National Stock Exchange turnover was 18,173 crore rupees.

Larsen & Toubro was the most active stock on the BSE with the turnover of 449.63 crore rupees followed by Piramal Life Sciences, Chambal Fertilisers and Chemicals and Bajaj Finserve.

Rupees rebounds

The Indian rupee gained 23 paise to 42.73 against the US dollar on Thursday. At the Interbank Foreign Exchange market, rupee rebounded to 42.87 a dollar from its last close of 42.96 and gradually moved upwards.

Futures of crude oil traded in New York fell 76 cents to $130.27 a barrel, while London Brent crude fell 83 cents to $130.10 a barrel today as a strengthening dollar more than offset fears of supply disruptions in Nigeria.

Gainers and losers

Larsen & Toubro gained 6.6% to 2,889.10 rupees. The company reported a 38% rise in net profit to 966.76 crore rupees on a 35% increase in total income to 8,715.92 crore rupees during the fourth quarter ended in March.
Cipla rose 3% to 213.95 rupees, Satyam Computer gained 2.3% to 526.25 rupees, Ranbaxy Laboratories climbed 1.8% to 504.60 rupees and Wipro jumped 1.3% to 512.50 rupees.

Ambuja Cements lost 6.1% to 97.80 rupees, Mahindra & Mahindra fell 5.5% to 606.20 rupees, State Bank of India declined 3.6% to 1,464.30 rupees and Hindalco Industries fell 3.5% to 189.60 rupees.

ICICI Bank fell 2.8% to 797.30 rupees on weak trading in the sector. Bank of India dropped 4.3% to 288.85 rupees and HDFC Bank lost 2% to 1,324.40 rupees.

Bharat Heavy Electricals fell 0.8% to 1,599.90 rupees and Punj Lloyd declined 2.2% to 310.80 rupees.

Tata Motors shares fell 8.2% to 582.55 rupees. Tata Motors on Thursday said that it plans to raise up to 9,770 crore rupees to finance the $2.3 billion buyout of British luxury brands Jaguar and Land Rover.

The company plans to raise about 7,200 crore rupees through three simultaneous but separate rights issues, and an equity issue as large as 2,200 crore rupees.

Tata Motors would raise about 2,000 crore rupees through a rights issue of ''A'' equity shares carrying differential voting rights of one vote for every 10 ''A'' equity shares and another 3,000 crore rupees from a rights issue of five year 0.5% convertible preference shares.

The CCPs would be optionally convertible into class A equity shares after three years but before five years from the allotment date.

Reliance companies update

Reliance Industries gained 2.2% at 2,466.50 rupees and Reliance Communication surged 3.9% at 573.20 rupees.

World markets review

In Tokyo Nikkei 225 Index closed higher 415.03 or 3.03% to 14,124.47, in Hong Kong Hang Seng index climbed 134.48 or 0.55% closed to 24,383.99. In Australia ASX 200 index climbed 61.30 or 1.09% to close 5,709.40. In Malaysia KL Composite index increased 1.24 or 0.10% to close at 1,261.82.

In South Korea Kospi Index increased 35.58 or 1.97% to close at 1,841.22, in Thailand SET index decreased 2.38 or 0.29% to 830.61 and Indonesia JSE Index edged increased 13.18 or 0.52% to 2,446.95. Sensex index in India fell 209.11 or 1.27% to 16,316.26.

In London FTSE 100 Index closed lower 1.5 or 0.02% to 6,068.10, in Paris CAC 40 Index increased 0.10% to close at 4,975.90 and in Frankfurt DAX index higher 21.19 or 0.30% to close at 7,055.03. In Zurich trading SMI increased 67.26 or 0.90% to close at 7,541.76.

Dow Jones Industrial Average rose 52.19 or 0.41% to a close of 12,646.22, S&P 500 closed up 7.42 or 0.53% to 1,398.26, and Nasdaq Composite Index increased 21.62 or 0.87% to close at 2,508.32. In Toronto TSX Composite closed down 111.45 or 0.76% to 14,577.17.