Sensex in India Surges 6.4%, HDFC Soars 14%

123jump.com Staff
04 May, 2009
New York City

Mumbai stocks surged on the optimism about recovery in the global markets and expanding manufacturing in China. HDFC reported 20% increase in profit and Allahabad Bank net income increased 55%. Century Textiles net increase 10%. Banks, financial services and commodities linked stocks surged.

[R]7:00PM Mumbai, 5:30AM New York – Mumbai stocks surged on the optimism about recovery in the global markets and expanding manufacturing in China. HDFC reported 20% increase in profit. Banks, financial services and commodities linked stocks surged.[/R]

Markets in Mumbai surged after two days of hiatus last week. Rising commodities prices, increased net inflows of foreign investments and peaceful completion of the third phase parliament election lifted indexes.

The Sensex Index surged 6.4% or 731.50 to 12,134.75 and the CNX Nifty 50 Index increased 5.2% to 3,654. On the BSE, trading increased to 4,726 crore rupees from 4,168 rupees on Wednesday of last week. All members of the Sensex 30 index gained.

Markets surged after short trading week last week on the optimism that commodities prices are expected to gain. On Friday, China reported second monthly increase in manufacturing lifting commodities and crude oil prices around the world.

The manufacturing index in April and in March showed expansion and the government stimulus is expected to keep economic growth above 7% in the current year.

The Association of Southeast Asian Nations and Japan pledged $120 billion to a reserve fund for emergency lending at a weekend meeting in Bali, Indonesia.

The return of international investors also improved liquidity and trading sentiment. International investors purchased net $1.3 billion or 6,500 crore rupees of stocks in Mumbai in April. The steady inflow from international investors has lifted the benchmark index more than 35% in the last five weeks of trading.

Housing Development Finance Corp soared after it reported fourth quarter profit declined to 4.5% from a year ago quarter. In the quarter a year ago, the company had recorded one-time gain of 200 crore rupees for the sale of HDFC General Insurance Company. Net interest income jumped 31% to 2,900 crore rupees and excluding one-time gain the net profit increased 20% to 733 crore rupees.

Gainers & Losers

State Bank of India surged 6.9% to 1,366.25 rupees, Allahabad Bank increased 8.8% to 56.90 rupees and Housing Development Finance Corp surged 14% to 1,965.05.

Maruti Suzuki India Ltd. increased 3.1% to 839.35 rupees after it reported 16% increase in sale to 71,748 vehicles in April. Mahindra & Mahindra Ltd. jumped 12% 545.80 rupees after it reported April sales increase of 17% to 22,617 vehicles.

Larsen & Toubro Ltd. soared 8.4% to 952.85 rupees and Siemens India gained 9.3% to 336.65 rupees after it reported quarterly revenue increase of 11% to 2,390 crore rupees and earnings surged to 226 crore rupees.

Sterlite Industries surged 17% to 478.05 rupees and Hindalco industries Ltd increased 14% to 61.45. Sesa Goa increased 8% and Steel Authority of India increased 7.5%.

Reliance Industries increased 4% 1,873 after it agreed to acquire 5% stake in Reliance Petroleum from Chevron at 60 rupees a share. The deal increases its stake in RPL to 75.4%. Chevron had paid the same price to acquire the stake 3 years ago.

Earnings News

Allahabad Bank, the public sector bank in India said fourth quarter total income rose 20% to Rs.2,373.37 crore from Rs.1,980.16 crore a year ago. Net profit for the quarter rose 55.8% to Rs.264.05 crore compared to net profit of Rs.169.50 crore a year ago.

Total net income for the fiscal year 2008 rose 19% to Rs.8528.51 crore from Rs.7156.41 crore a year ago. Net profit for the year fell 20.5% to Rs.790.47 crore compared to net profit of Rs.7156.4134 crore a year ago.

Allahabad Bank, in the last one year traded as high as Rs.94.90 in May 2008 and as low as Rs.36.85 in March 2009. Based on the yesterday’s closing price of Rs.56.95 the company has market cap of Rs.25.44 billion.

Century Textiles and Industries Limited, operates in textiles, pulp and paper, cement and other segments said full-year total income rose 10.6% to Rs.38848.50 million from Rs.35127.40 million a year ago. Net profit for the quarter fell 15.3% to Rs.2365.40 million compared to net profit of Rs.2794.30 million a year ago.

Century Textiles and Industries Limited, in the last one year traded as high as Rs.897.00 in May 2008 and as low as Rs.113.10 in December 2008. Based on the yesterday’s closing price of Rs.252.55 the company has market cap of Rs.23.50 billion.

Indian Overseas Bank, provides various banking service said fourth quarter total income rose 27% to Rs.3134.20 crore from Rs.2467.95 crore a year ago. Net profit for the quarter rose 5.4% to Rs.322.37 crore compared to net profit of Rs.305.95 crore a year ago.

Total net income for the fiscal year 2008 rose 27.3% to Rs.11,168.73 crore from Rs. 8775.87 crore a year ago. Net profit for the year rose 10.3% to Rs. 1325.79 crore compared to net profit of Rs. 1202.34 crore a year ago.

Indian Overseas Bank, in the last one year traded as high as Rs.156.80 in May 2008 and as low as Rs.37.55 in March 2009. Based on the yesterday’s closing price of Rs.68.70 the company has market cap of Rs.37.43 billion.

Asian Markets Review

The Hang Seng index in Hong Kong increased 860.06 or 5.54% closed to 16,381.05, CSI 300 index in China higher 91.38 or 3.48% closed to 2,714.30. ASX 200 index in Australia increased 113.40 or 3.01% closed to 3,883.00. The KL Composite index in Malaysia higher 18.62 or 1.88% closed to 1,009.36.The Markets of Tokyo were closed today.

The Kospi Index in South Korea increased 28.56 or 2.09% to close at 1,397.92. SET index in Thailand closed higher 14.57 or 2.96% to 506.26 and JSE Index in Indonesia increased 58.56 or 3.39% closed to 1,788.15. The Sensex index in India increased 731.50 or 6.41% closed to 12,134.75.

Europe Markets Review

In Paris CAC 40 Index increased 34.63 or 1.10% to 3,194.48 and in Frankfurt DAX index traded higher 79.64 or 1.67% to 4,849.09. In Zurich trading SMI increased 32.13 or 0.61% to 5,258.05.The Markets of London were closed today.