Foreign Fund Flows Lift Sensex in India

123jump.com Staff
02 Jun, 2009
New York City

Stocks in India edged higher for the fifth day. Net inflows from foreign investors, rising commodities prices and expanding manufacturing has sustained recent gains. Markets are rallying ahead of the release of government agenda on June 4.

[R]5:00 PM Mumbai, 7:30 AM New York – Stocks in India edged higher for the fifth day. Net inflows from foreign investors, rising commodities prices and expanding manufacturing has sustained recent gains. Markets are rallying ahead of the release of government agenda on June 4.[/R]

Stocks in Mumbai edged higher for the fifth day in a row on the hopes that new government agenda will sustain economic expansion.

The rise in copper and crude oil prices lifted stock of mining companies and oil exploration and refining companies. Expansion in manufacturing as indicated by the PMI index also lifted the sentiment.

Stable market conditions and optimistic outlook is expected to help companies to raise capital. Real estate developers and other companies have raised $3 billion in public offering in the last three weeks and more companies are expected to raise between $4 billion and $5 billon by the end of the year.

Foreign investors poured 21,319 crore rupees or $4.3 billion in the first five months of the year with 95% investments in the last one month.

The Sensex index in India increased 34.28 or 0.23% closed to 14,874.91 and the CNX Nifty index decreased 0.1% to 4,525.25.

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

Trading on the NSE increased to 25,721 crore rupees from 24,877 crore rupees and on the BSE increased to 8,177 crore rupees. Three block trades in Essar Oil boosted trading on the BSE.

Of the 2,850 stocks traded on the BSE, 1,664 increased, 1,130 decreased and 56 were unchanged.

Gainers & Losers

Cement shipment in May increased. Aditya Birla Group monthly shipment in May increased 19.5% to 3.18 million ton and at Ambuja Cements edged higher by 8.3%. Shree Cement shipment surged 32.1%.

Mahindra & Mahindra increased 2% to 724.80 rupees after total equipment sales including tractor sales in May were nearly unchanged at 30,366 from a year ago. Auto sales declined 18.3% from a year ago to 16,866 vehicles.

Tata Motors increased 4.9% to 354.45 rupees domestic auto sales declined 11% from a year ago to 38,392 vehicles but gained 6% from April. The commercial vehicles sales including trucks decreased 3% to 23,004 units.

Bajaj Auto motor cycles sales declined 8.1% from a year ago to 165,049.

Tata Steel surged 10.7% to 484 core rupees following 8% gain in yesterday trading.
Hindustan Petroleum Corporation decreased 3.2% to 349 rupees after it reported 32.7% increase in net profit in the fourth quarter.

Earnings Review

Hindustan Petroleum Corporation Ltd, an integrated oil refining and marketing company said fourth quarter total income rose 24.2% to Rs.31,779.49 crore from Rs.25,580.46 crore a year ago. Net profit for the quarter rose 32.6% to Rs.5104.04 crore compared to net profit of Rs.384.51 crore a year ago.

Total income for the fiscal year 2008 rose 16.5% to Rs.1,29,978.82 crore from Rs.1,11,603.58 crore a year ago. Net profit for the year fell 44.5% to Rs.757.39 crore compared to net profit of Rs.1364.10 crore a year ago.

Hindustan Petroleum Corporation Ltd, in the last one year traded as high as Rs.397.55 in May 2009 and as low as Rs.164.10 in July 2008. Based on the yesterday’s closing price of Rs.349.40 the company has market cap of Rs.118.32 billion.

JMC Projects (India) Limited, engaged in the construction business said fourth quarter total income rose 17.7% to Rs.366.28 crore from Rs.311.12 crore a year ago. Net profit for the quarter rose 70.3% to Rs.16.30 crore or Rs.8.50 per diluted share compared to net profit of Rs.9.57 crore or Rs.4.92 per share a year ago.

Total income for the fiscal year 2008 rose 43% to Rs.1,319.29 crore from Rs.920.60 crore a year ago. Net profit for the year rose 19.8% to Rs.36.76 crore or Rs.19.29 per diluted share compared to net profit of Rs.30.72 crore or Rs.15.84 per share a year ago.

JMC Projects (India) Limited, in the last one year traded as high as Rs.245.75 in June 2008 and as low as Rs.45.00 in January 2009. Based on the yesterday’s closing price of Rs.153.70 the company has market cap of Rs.2.79 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 26.56 or 0.27% to 9,704.31, Hang Seng index in Hong Kong decreased 499.51 or 2.64% closed to 18,389.08, CSI 300 index in China higher 6.76 or 0.24% closed to 2,865.10. ASX 200 index in Australia increased 60.90 or 1.56 % closed to 3,955.30. The KL Composite index in Malaysia higher 1.82 or 0.17% closed to 1,063.62.

The Kospi Index in South Korea decreased 2.25 or 0.16% to close at 1,412.85. SET index in Thailand closed lower 5.68 or 0.98% to 574.30 and JSE Index in Indonesia increased 0.06 or 0.00% closed to 1,998.64. The Sensex index in India increased 34.28 or 0.23% closed to 14,874.91.