Indian Stocks Fall From Peak, Sensex Drops 3.3%

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

The Sensex index in India fell sharply after gaining for six weeks in a row. Foreign institutional investors have resumed the stock purchase in India in the last three weeks. Bharti Airtel declined ahead of earnings tomorrow.

[R]7:00PM Mumbai – The Sensex index in India fell sharply after gaining for six weeks in a row. Foreign institutional investors have resumed the stock purchase in India in the last three weeks. Bharti Airtel declined ahead of earnings tomorrow.[/R]

Stocks in Mumbai trading declined after surging to gains of 35% in six weeks. The Senses Index declined 370.10 or 3.25% to 11,001.75 and CNX Nifty 50 index dropped 3.1% or 107.65 to 3,362.35.

In trading, index opened lower and continued to slide until the mid-day. Market attempted a recovery in the afternoon but declined further in the last hour of trading and closed near the lows of the day.

In trading on BSE 669 stocks increased, 1,823 declined and 62 were unchanged. Reliance Capital, Jaiprakash Associates and Reliance Natural Resources lead the most active stocks in trading volume.

The Sensex for the year is still up 11% for the year and most major markets in Asia are down.

Foreign institutional investors have resumed buying shares in India after selling shares in January and February 2009. For the calendar year so far, institutions have net purchased 542 crore rupees and inflows in April were 7,213.60 crore rupees. Yesterday alone, foreign institution added 1,839 crore rupees.

The parliament election in Maharashtra and Gujarat are scheduled on April 30 and financial markets will be closed.

Bharti Airtel declined 2.3% to 725.70 rupees ahead of its earnings release tomorrow. Analysts are expecting sales in the fourth quarter to rise between as low as 25% and as high as 35% compared to a year ago.

Hindustan Zinc declined 5.3% after the company lowered the price of zinc and lead between 2% and 3%.

Cement stocks were on the decline on profit taking after the release of better than earnings in the sector. Ultratech Cement, Grasim Industries and ACC fell.

Earnings Review

Aditya Birla Nuvo Limited, the Indian maker of garments, viscose filament yarn, textiles and carbon black said fourth quarter net loss was Rs.141.15 crore compared to net loss of Rs.21.84 crore, a year ago.

Aditya Birla Nuvo Limited, in the last one year traded as high as Rs.1635.00 in May 2008 and as low as Rs.330.25 in March 2009. Based on the yesterday’s closing price of Rs.523.75 the company has market cap of Rs.49.76 billion.

Castrol India Limited, the unit of Europe’s second-largest oil company BP Plc said first quarter net sales rose 3.21% to Rs. 5,087 million. Net profit in the quarter rose 4.81% to Rs.763.00 million compared to net profit of Rs.728 million, a year ago.

Castrol India Limited, in the last one year traded as high as Rs.360.00 in September 2008 and as low as Rs.234.00 in July 2008.

KPIT Cummins Infosystems Limited, provides information technology (IT) and IT enabled services to clients across the world said fourth quarter sales rose to Rs. 209.76 crore from Rs. 163.69 crore a year ago. Net profit in the quarter rose to Rs.19.32 crore compared to net profit of Rs.10.39 crore, a year ago.

KPIT Cummins Infosystems Limited, in the last one year traded as high as Rs.108.40 in April 2008 and as low as Rs.20.00 in January 2009. Based on the yesterday’s closing price of Rs.44.25 the company has market cap of Rs.3.35 billion.

Sterlite Industries (India) Limited, the No.1 copper and zinc producer said fourth quarter net sales fell 36% to Rs. 43.36 billion from Rs. 67.66 billion. Net profit in the quarter dropped 55% to Rs.5.98 billion compared to net profit of Rs.13.18 billion, a year ago.

Sterlite Industries (India) Limited, in the last one year traded as high as Rs.954.80 in May 2008 and as low as Rs.164.50 in November 2008. Based on the yesterday’s closing price of Rs.383.20 the company has market cap of Rs.271.50 billion.

UTV Software Communications Limited, the Indian media company said fourth quarter revenues rose to Rs. 208.68 crore from Rs 194.14 crore. Net profit in the quarter dropped 40% to Rs.11.22 crore compared to net profit of Rs.18.75 crore, a year ago.

UTV Software Communications Limited, in the last one year traded as high as Rs.830.00 in September 2008 and as low as Rs.182.00 in April 2009. Based on the yesterday’s closing price of Rs.306.80 the company has market cap of Rs.10.49 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 232.57 or 2.67% to 8,493.77, Hang Seng index in Hong Kong decreased 285.31 or 1.92% closed to 14,555.11, CSI 300 index in China higher 5.24 or 0.21% closed to 2,518.53. ASX 200 index in Australia decreased 23.20 or 0.62% closed to 3,708.40. The KL Composite index in Malaysia lower 14.42 or 1.47% closed to 965.70.

The Kospi Index in South Korea decreased 39.59 or 2.95% to close at 1,300.24. SET index in Thailand closed lower 2.27 or 0.48% to 472.72 and JSE Index in Indonesia increased 19.83 or 1.26% closed to 1,595.92. The Sensex index in India decreased 370.10 or 3.25% closed to 11,001.75.