India Stocks at Six-month High

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

Stocks in Mumbai rallied to a six months high on rising earnings bolstered sentiment among investors. The steady stream of better than expected earnings, the prediction of normal monsoon and a rising flow of funds from foreign investors lifted the benchmark index. The index has recovered 39%.

[R]8:30AM New York, 6:00 PM Mumbai – Stocks in Mumbai rallied to a six months high on rising earnings bolstered sentiment among investors.[/R]

The steady stream of better than expected earnings, the prediction of normal monsoon and a rising flow of funds from foreign investors lifted the benchmark index for the fourth day in last seven sessions. The benchmark index has recovered from its low of 8,160 in March 2009.

The benchmark index Sensex surged 1.8% or 194.06 to 11,329.05 and CNX Nifty 50 increased 52.75 or 1.54% to 3,480.75.

Daily trading on the BSE increased to 5,723 crore rupees from 4,743 crore rupees in the previous session.

For the month foreign institutional investors net purchase totaled 4,548.70 crore rupees but in the calendar year till April 22 the institutions sold 2,122.90 crore rupees.

The most widely watched indicator, the outlook for rainfall between June and September or monsoon rain in the peak season was estimated to be 96% of the long-term average. The Indian Meteorological Department released their estimates on April 17 and since then investors have been willing to take more risk in financial markets.

Foreign direct investment in India is expected to increase to $40 billion in the current fiscal year ending in March 2010. In the fiscal year 2009, the direct investment is estimated to be near $37.5 billon.

Rupee edged higher against the dollar with the return of foreign investors to the stock market. Rupee edged up to 49.90 from 49.92 and if the current rally in stocks continue rupee may reach as high as 46.50 against a dollar according to several currency traders.

Adani Power is filed its revised prospectus to raise 33 crore rupees in stock offering after it previous plan to float the company was derailed as markets around the world fell sharply.

Banks in trading closed higher on several positive earnings and other news. HDFC bank fourth quarter net jumped 33.9% to 630.88 crore rupees and its non-performing assets were at 1.98% of total loan portfolio. HDFC Bank Ltd increased 1.6% to 1,110.25 rupees and IDBI Bank Ltd. surged 13% to 67.30 rupees.

ICICI Bank gained 2.4% to 434.10 rupees ahead of its earnings tomorrow. The bank also lowered its key lending rate for consumers and businesses between 25 and 50 basis points after the Reserve Bank of India lowered rate in a surprise move this week.

Axis Bank increased 5.5% to 529.60 on broker recommendation.

Maruti Suzuki increased 0.7% after it reported fourth quarter net profit declined 18% to 243 crore rupees.

Mahindra & Mahindra added 6.1% to 471.30 rupees and Hero Honda and Tata Motors gained in the session on the expectations of higher unit sales in the current fiscal quarter.
Century Textiles jumped 9.7% to 235 rupees after SBI Mutual Fund increased its stake in the company to 5.02% from 4.87%.

Videocon Industries jumped 9.01% to 122.20 rupees ahead of its earnings on April 29 and Aditya Birla Nuvo surged 8.6% to 563 rupees ahead of its earnings on April 28.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 139.02 or 1.57% to 8,707.99, Hang Seng index in Hong Kong increased 44.39 or 0.29% closed to 15,258.85, CSI 300 index in China lower 20.68 or 0.80% closed to 2,572.89. ASX 200 index in Australia decreased 30.70 or 0.82% closed to 3,712.30. The KL Composite index in Malaysia higher 14.04 or 1.43% closed to 992.68.

The Kospi Index in South Korea decreased 14.70 or 1.07% to close at 1,354.10. SET index in Thailand closed higher 8.01 or 1.72% to 474.07 and JSE Index in Indonesia decreased 1.36 or 0.09% closed to 1,591.34. The Sensex index in India increased 194.06 or 1.74% closed to 11,329.05.

Europe Markets Review

In London FTSE 100 Index traded higher 62.71 or 1.56% to 4,080.94, in Paris CAC 40 Index increased 46.68 or 1.55% to 3,055.30 and in Frankfurt DAX index traded higher 67.01 or 1.48% to 4,605.22. In Zurich trading SMI increased 61.97 or 1.23% to 5,085.87.