India Stocks Fall, Unilever Weak Profit

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

Economy in India expanded at 6.5% in the fiscal year ending in March of 2009. Stocks and rupee declined ahead of election results and weak sentiment in global markets. Hindustan Unilever dropped after it reported weak earnings rise. Industrial production in March is expected to fall.

[R]10:00AM New York, 7:30 PM Mumbai – Economy in India expanded at 6.5% in the fiscal year ending in March of 2009. Stocks and rupee declined ahead of election results and weak sentiment in global markets. Hindustan Unilever dropped after it reported weak earnings rise. Industrial production in March is expected to fall.[/R]

Stocks in Mumbai fell 1.6% after rallying for weeks ahead of parliamentary election results.

In Mumbai, the BSE 30-share Sensex Index declined 1.6% or 193.44 to 11,682.99, and the CNX Nifty dropped 1.8% or 66.10 to 3,554.60. The rupee declined to 49.51 from 49.07 against a dollar.

Of the stocks traded on the BSE, 938 increased, 1,596 fell, and 57 were unchanged.

The BSE appointed Madhu Kannan as managing director and chief executive of the exchange. The exchange has lagged the recently launched National Stock Exchange in technology integration and fall in traded volume.

Kannan was appointed after nine months when the former chief Rajnikant Patel resigned. Kannan worked as a managing director of global strategy with Bank of America-Merrill Lynch.

Trading Statistics

Daily turnover on the BSE fell to 4,348 crore rupees from 6,596.56 crore rupees on Friday.

Economy Expanded at 6.5%, PM

Economic Times of India reported India’s Prime Minister Manmohan Singh announced today the country’s economy rose an estimated 6.5% in fiscal year 2009 ended on March 31.

Consumer price inflation is forecasted to moderate in the next five to six months.

Prime Minister Sing noted, “The wholesale price inflation is already down to around 1 per cent and there is a time lag for the consumer price inflation to also fall.”

Industrial Production Forecasted to Contract

Industrial production in March is expected to decline between 0.5% and 0.6% according a survey conducted by five economists in Mumbai. The output fell 1.2% in February.

Gainers & Losers

Reliance Industries declined 2% to 1,859.35 rupees.

IT stocks fell on fears the US will scrap tax incentives for American companies that ship jobs overseas. Infosys fell 0.5%, TCS shed 2.3% and Wipro declined 1.6%.

DLF dropped 5.1% on reports the promoters are close to selling 7% stake worth 3,000 crore rupees to a group of foreign and domestic institutional investors.

Financial stocks dropped. State Bank of India declined 4.9% to 1,260.70 rupees, but ICICI Bank soared 0.6% to 523.45 rupees and HDFC Bank increased 0.1% to 1,144.80 rupees.

Hindustan Unilever fell 2.9% to 226.05 rupees as net profit rose by a less-than-expected 3.7% to 394.99 crore rupees.

Mahindra & Mahindra gained 1.6%, Ashok Leyland dropped 5.5% and Maruti Suzuki India rose 0.3%.

Earnings Review

Hindustan Unilever Ltd, India''s largest consumer-goods maker said first quarter sales rose 6% to Rs.39.88 billion from Rs.37.62 billion a year ago. Net profit for the quarter rose 3.7% to Rs.3.95 billion or Rs.1.81 per diluted share compared to net profit of Rs.3.81 billion or Rs.1.75 per share a year ago.

Hindustan Unilever Ltd, in the last one year traded as high as Rs.271.00 in February 2009 and as low as Rs.185.00 in July 2008. Based on the Friday’s closing price of Rs.226.05 the company has market cap of Rs.492.67 billion.

KSK Energy Ventures Limited, the power project development company in India said full-year total income rose 37.6% to Rs.492.41 crore from Rs.357.73 crore a year ago. Net profit for the year rose 33% to Rs.135.91 crore compared to net profit of Rs.102.48 crore a year ago.

KSK Energy Ventures Limited, in the last one year traded as high as Rs.245.00 in September 2008 and as low as Rs.107.00 in October 2008. Based on the Friday’s closing price of Rs.176.30 the company has market cap of Rs.61.02 billion.

SRF Limited, an India-based company engaged in businesses in industrial intermediates said fourth quarter sales rose 4% to Rs.407.52 crore from Rs.391.83 crore a year ago. Net profit for the quarter was Rs.21.15 crore compared to net profit of Rs.1.02 crore a year ago.

Net sales for the fiscal year 2008 rose 11.5% to Rs.1800.82 crore from Rs.1615.30 crore a year ago. Net profit for the year rose17.7% to Rs.163.27 crore compared to net profit of Rs.138.73 crore a year ago.

SRF Limited, in the last one year traded as high as Rs.152.45 in August 2008 and as low as Rs.62.15 in February 2009. Based on the Friday’s closing price of Rs.89.60 the company has market cap of Rs.5.72 billion.

State Bank of India, India''s largest lender said fourth quarter total income rose 35% to Rs.220.61 billion. Net profit for the quarter rose 46% to Rs.27.42 billion compared to net profit of Rs.18.83 billion a year ago.

State Bank of India, in the last one year traded as high as Rs.1,742 in May 2008 and as low as Rs.894.00 in March 2009. Based on the Friday’s closing price of Rs.1,260.70 the company has market cap of Rs.800.39 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 19.15 or 0.20% to 9,451.98, Hang Seng index in Hong Kong decreased 301.92 or 1.74% closed to 17,087.95, CSI 300 index in China lower 63.90 or 2.29% closed to 2,725.32. ASX 200 index in Australia decreased 15.70 or 0.40% closed to 3,926.00. The KL Composite index in Malaysia lower 1.28 or 0.12% closed to 1,025.50.

The Kospi Index in South Korea increased 3.03 or 0.21% to close at 1,415.16. SET index in Thailand closed higher 7.46 or 1.41% to 535.18 and JSE Index in Indonesia decreased 31.79 or 1.71% closed to 1,830.74. The Sensex index in India decreased 193.44 or 1.63% closed to 11,682.99.