TCS Net Rises; Unitech in $1B Offering

123jump.com Staff
20 Apr, 2009
New York City

Reserve Bank of India estimated that drivers of economic growth are weakening and economic activity is likely to moderate in the months ahead. Unitech, one of the largest real estate developers is looking to raise 5,000 crore rupees or $1 billion in equity offering. TCS quarterly net rises 4.6%.

[R]10:00AM New York, 7:30 PM Mumbai - Reserve Bank of India estimated that drivers of economic growth are weakening and economic activity is likely to moderate in the months ahead.[/R]

Indian stocks fell as investors locked in profits after recent gains. The index slipped below 11,000.

In Mumbai, the BSE 30-share Sensex index declined 0.4% or 43.59 to 10,979.50, and the CNX Nifty shed 0.2% or 7.30 to 3,377.10.

Of the stocks traded on the BSE, 1,509 gained, 1,059 declined, and 56 were unchanged.

Trading Statistics

Daily turnover on the BSE dropped to 4,727 crore rupees from 5,569.51 crore rupees on Friday last week.

India’s Drivers of Growth Moderate

Reserve Bank of India reported today most major drivers of the country’s economic growth and various surveys of economic activity point to a moderation in the coming months.

Various stimulus measures from the Reserve Bank of India and government are expected to trim the effects of moderating growth.

Tata Consultancy Services Profit Rises 4.6%

Tata Consultancy reported today profit in the three months ended March increased 4.6%, but below the consensus estimate of analysts, as the global economic conditions took their toll.

The largest software services exporter from India relies for more than 50% of its revenues linked to the U.S. companies and more than 20% of its revenues are dependent on financial services sector around the world.

Gainers & Losers

Reliance Industries dropped 0.2% to 1,713.70 rupees after announcing the suspension of its export oriented unit status for its oil & gas refinery in Jamnagar.

IT stocks dropped despite a weakening rupee to 50.33 against the dollar from 49.87 on Friday last week on fears about the health of the global economy.

Wipro fell 0.3% to 273.60 rupees, TCS slipped 2.2% to 560.40 rupees and Infosys Technologies was unchanged at 1,392.25 rupees.

HCL Technologies rose 6.2% and Polaris Software increased 12.9% on reporting a 78.5% gain in net profit to 130.71 crore rupees.

Financial stocks fell. HDFC Bank declined 0.1% to 1,066.90 rupees, ICICI Bank fell 3.4% to 426.55 rupees and HDFC fell 2.2% to 1,754.05 rupees.

State Bank of India fell 0.8% to 1,295.95 rupees.

Larsen & Toubro gained 2% to 883.90 rupees on expectations its order inflow to grow by 25% to 35% in the year ending March 2010.

Cipla declined 3% on reports the US Food and Drug Administration has found nine deviations in manufacturing process during a recent inspection of the company''s Bangalore plant.

Unitech increased 2.2% extending gains after its board of directors approved 5,000 crore rupees through equity offering to institutional buyers.