Mixed Earnings in India; Reliance Net Drops

123jump.com Staff
22 Jan, 2009
New York City

Inflation in India edges to 5.6% but still lower than a year ago as the economy slows. Companies report mixed earnings. Reliance net drops 8.8%, Bharti Airtel net rises 25% and Hero Honda profit advances 9% and Bharat Forge profit slumps 92%. Coromandel Fertilisers net surges 77%.

[R]10:00AM New York, 7:30 PM Mumbai - India’s inflation rises 5.6% in the week ending January 10. Economic growth in India is expected to decline in the current but the pace of deceleration is estimated to be slower than most other developed economies. Companies reported mixed earnings.[/R]

Indian market indices edged fractionally higher in volatile trading on mixed news on third quarter corporate earnings, rising inflation and gains in Asian markets.

In Mumbai, the BSE 30-share Sensex Index gained 0.4% or 34.67 to 8,813.84, and the CNX Nifty advanced 0.3% or 7.65 to 2,713.80.

Of the stocks traded on BSE, 756 rose, 1,687 declined, and 41 were unchanged.

Trading Statistics

Daily turnover on BSE stood at 38,676.85 crore rupees from 43,026.95 crore rupees yesterday.

India’s Economic Growth to Slow to 6.5% in 2008

Economic Times of India reported today that Australian-brokerage Macquarie Securities projects that the country’s economic growth will ease to 6.5% in the current year ending March 2009 and drop to 5.5% in 2010.

Additionally, Goldman Sachs earlier estimated that India’s economic growth will rise to 5.6% in 2010.

Head of India and ASEAN Economics, Rajeev Malik said, “This slowdown is still not as steep as other Asian economies except China.”

Inflation Soars 5.6% in the week ending January 10

Inflation in India edged higher to 5.6% for the week ended January 10 from 5.24% a week earlier. Economists were looking for inflation to drop to 5.1%.

Gainers & Losers

Reliance Industries increased 1.2% to 1,132.95 rupees ahead of its results announcement. However the company announced after markets closed today that net profit dipped 8.8% to 3,501 crore rupees in the third quarter to December from the same period a year ago.

Bharti Airtel advanced 6.2% after reporting that net profit in the three months to December advanced 25%.

Tata Steel fell 5.1% to 179.20 rupees after the company’s overseas unit signed a pact with UK based Klesch & Company for selling aluminium smelters.

Financial stocks were mixed after inflation rose to 5.6%. State Bank of India gained 0.7% to 1,089.05 rupees, HDFC Bank advanced 0.4% to 892.80 rupees, but ICICI Bank fell 2.5% to 378.35 rupees.

HDFC rose 2%

Hero Honda Motors rose 0.9% as net profit rose 9.2% to 300.42 crore rupees in the third quarter to December from the same period a year ago.

Ranbaxy Laboratories fell 8.9% after announcing that net loss of 806.55 crore rupees in the fourth quarter ending December 2008 from 48.4 crore rupees from a year ago period.

Bharat Forge dropped 6.1% after the company reported a 92.5% fall in net profit to 4.35 crore rupees in the third quarter.

Coromandel Fertilisers rose 13.1% after third quarter net profit increased 77% in the third quarter.

Pudumjee Pulp & Paper Mills rallied 2.2% after its board approved 5 to 1 stock split.

Kotak Mahindra Bank declined 5.8% after its net profit in the three months to December shed 30% in the third quarter.