Tata Steel, Indiabulls Raise Capital

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

Stocks in Mumbai trading declined for the first time after a rally that lifted the benchmark indexes nearly 20%. The euphoric mood helped companies to raise capital. The real estate developer Indiabulls and Tata Steel raised $1 billion.

[R]6:00 PM Mumbai – Stocks in Mumbai trading declined for the first time after a rally that lifted the benchmark indexes nearly 20%. The euphoric mood helped companies to raise capital. The real estate developer Indiabulls and Tata Steel raised $1 billion.[/R]

Stocks in Mumbai trading declined for the first time after rallying more than 18% in three days.

Congress Party leaders Manmohan Singh and Sonia Gandhi met President Pratibha Patil seeking a permission to form the next government. The Prime Minister is expected to be sworn in on May 22.

The Sensex index in India decreased 241.37 or 1.7% closed to 14,060.66 and the CNX Nifty declined 58.75 or 1.4% to 4,259.70.

Of the 30 stocks in the Sensex, 16 increased and 14 declined.

Trading on the BSE declined to 8,400 crore rupees and on the NSE declined to 28,400 crore rupees.

Gainers & Losers

Essar Oil surged 11% after it reported fourth quarter net profit of 660 crore rupees compared to net loss of 8 crore rupees in the prior year quarter.

Reliance Industries declined 4.3% to 2,139.45 after falling 5.2% on Tuesday and surging 21% on Monday.

Indiabulls Real Estate Ltd surged 2% to 206.15 rupees after it raised 2,660 crore rupees (or $560 million). The real estate investors placed 14.36 crore shares (or 143.6 million) institutional investors at 185 rupees a share.

Automakers rallied on the hopes that the government will provide cheaper financing to customers and rationalize excise duties to component makers.

Mahindra & Mahindra surged 6.6%, Maruti Suzuki India gained 2.7% and Tata Motors surge 18% after it launched 4,200 crore rupees bond offering. The issue was revised 12% higher on better than expected demand.

Banking stocks were volatile. ICICI Bank declined 6.2%, HDFC Bank fell 2.3% and State Bank of India increased 0.5%. HDFC fell 5.5%.

Tata Steel surged 13% after the company confirmed the sale of debenture of 1,500 crore rupees to Life Insurance Corporation. The funds will be used to run its UK subsidiary Tata Steel UK that controls the recently purchased Corus.

Earnings Review

Bharat Forge Limited, the global full service provider of forged and machined engine and chassis components said fourth quarter total income fell 48% to Rs.306.84 crore from Rs.592.31 crore a year ago. Net profit for the quarter fell 26.2% to Rs.61.13 crore or Rs.2.63 per diluted share compared to net profit of Rs.82.85 crore or Rs.3.72 per share a year ago.

Total income for the fiscal year 2008 rose 2.4% to Rs.4842.75 crore from Rs.4730.46 crore a year ago. Net profit for the year fell 81% to Rs.58.26 crore compared to net profit of Rs.301.53 crore a year ago.

Bharat Forge Limited, in the last one year traded as high as Rs.307.85 in May 2008 and as low as Rs.69.15 in January 2009. Based on the yesterday’s closing price of Rs.162.00 the company has market cap of Rs.37.82 billion.

Crompton Greaves Limited, the electrical equipment manufacturer said fourth quarter sales rose 22% to Rs.2,460.02 crore from Rs.2,020.69 crore a year ago. Net profit for the quarter rose 35.5% to Rs.193.95 crore or Rs.5.29 per diluted share compared to net profit of Rs.143.17 crore or Rs.3.91 per share a year ago.

Total revenues for the fiscal year 2008 rose 27.5% to Rs.8,795.96 crore from Rs.6,897.85 crore a year ago. Net profit for the year rose 38% to Rs.559.90 crore compared to net profit of Rs.406.72 crore a year ago.

Crompton Greaves Limited, in the last one year traded as high as Rs.277.90 in September 2008 and as low as Rs.99.70 in March 2009. Based on the yesterday’s closing price of Rs.251.10 the company has market cap of Rs.87.98 billion.

Mundra Port and Special Economic Zone Limited the Mundra Port operator said fourth quarter total income fell 14% to Rs.3,014.02 million from Rs.3,495.58 million a year ago. Net profit for the quarter rose 66% to Rs.1511.91 million or Rs.3.77 per diluted share compared to net profit of Rs.911.03 million or Rs.2.26 per share a year ago.

Total income for the fiscal year 2008 rose 47% to Rs.12,395.243 million from Rs.8,449.265 million a year ago. Net profit for the year rose 105.5% to Rs.4,325.244 million or Rs.10.75 per diluted share compared to net profit of Rs.2104.181 million or Rs.5.61 per share a year ago.

Mundra Port and Special Economic Zone Limited, in the last one year traded as high as Rs.928.00 in May 2008 and as low as Rs.250.00 in November 2008. Based on the yesterday’s closing price of Rs.537.50 the company has market cap of Rs.215.36 billion.

Punjab National Bank, the public-sector commercial bank said fourth quarter total income rose 38% to Rs.6,098.14 crore from Rs.4,417.00 crore a year ago. Net profit for the quarter rose 59% to Rs.865.57 crore compared to net profit of Rs.543.76 crore a year ago.

Total income for the fiscal year 2008 rose 36% to Rs.22,689.73 crore from Rs.16,653.72 crore a year ago. Net profit for the year rose 45% to Rs.3197.03 crore compared to net profit of Rs.2203.09 crore a year ago.

Punjab National Bank, in the last one year traded as high as Rs.717.00 in May 2009 and as low as Rs.286.20 in March 2009. Based on the yesterday’s closing price of Rs.677.55 the company has market cap of Rs.213.63 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 54.35 or 0.6% to 9,344.64, Hang Seng index in Hong Kong decreased 68.19 or 0.39% closed to 17,475.84, CSI 300 index in China lower 27.22 or 1% closed to 2,812.86. ASX 200 index in Australia increased 7.30 or 0.2% closed to 3,824.60. The KL Composite index in Malaysia higher 19.14 or 1.9% closed to 1,042.63.

The Kospi Index in South Korea increased 7.49 or 0.5% to close at 1,435.70. SET index in Thailand closed higher 4.94 or 0.9% to 561.41 and JSE Index in Indonesia decreased 0.29 or 0.02% closed to 1,885.72. The Sensex index in India decreased 241.37 or 1.7% closed to 14,060.66.