Stocks in India Surge; Tata Motors Net Loss

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

Stocks in India surged as investors expect higher infrastructure spending in the upcoming budget. The latest move by NSE to reduce lot sizes for stock futures also contributed to stock gains. Tata Motors and Tata Steel reported weaker than expected results. Jaguar and Land Rovers sales plunged.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India surged as investors expect higher infrastructure spending in the upcoming budget. The latest move by NSE to reduce lot sizes for stock futures also contributed to stock gains. Tata Motors and Tata Steel reported weaker than expected results. Jaguar and Land Rovers sales plunged.[/R]

Stocks in Mumbai trading surged after the National Stock Exchange lowered the lot size for stock futures trading. The move will allow smaller investors to participate in the futures market.

The Sensex index in India increased 419.02 or 2.92% to 14,764.64 and CNX Nifty increased 3.2% to 4,375.50.

Of the 30 stocks in the Sensex index, 26 increased and 4 decreased.

Trading on the BSE declined to 5,512 crore rupees from 5,655 crore rupees and 1,682 stocks increased, 974 decreased and 100 were unchanged.

Trading lot size on the futures markets were lowered for a wide number of actively traded stocks. The size for Reliance Industries was cut to 150 stocks form 300, Maruti Suzuki was trimmed to 200 from 800 and State Bank of India was lowered to 132 from 264.

Gainers & Losers

Banks, infrastructure and realty stocks led the gainers in the rally. Ahead of railway budget stocks related to rail industry closed higher.

ICICI Bank surged 9.1% to 762 rupees, HDFC Bank increased 2.1% and State Bank of India added 2.5%. Kotak Mahindra Bank added 4.8%, Axis Bank increased 5% and Punjab National Bank added 3.2%.

Indiabulls Financial Services surged 5% after two separate blocks of 7,00,000 were traded at 184 rupees a share.

Tata Steel declined 2.8% to 386 rupees after it reported profit decline of 59% to 4,950 crore rupees. Sterlite Industries jumped 5.8%, JSW Steel increased 5.3% and Sesa Goa added 2.4%.

Bharat Heavy Electricals increased 3%, Larsen & Toubro added 5.8% and GMR Infrastructure increased 1.7%.

Indiabull Real Estate added 5.9%, Akruti city increased 5% and DLF added 2.3%.

Tata Motors increased 0.7%.

Titagarh Wagons gained 2.7%, Container Corp India increased 1% and Kalindee Rail Nirman Engineers added 0.8%

Earnings Review

Tata Motors Limited, the automobile manufacturer said full-year revenues rose 98.7% to Rs.70,370.4 crore from Rs.35,408.6 crore a year ago. Net loss for the quarter was Rs.2,505.3 crore or Rs.56.88 per diluted share compared to net profit of Rs.2,167.7 crore or Rs.51.31 per share a year ago.

Tata Motors Limited, in the last one year traded as high as Rs.495.35 in June 2008 and as low as Rs.122.00 in December 2008. Based on the yesterday’s closing price of Rs.340.30 the company has market cap of Rs.153.08 billion.

Tata Steel Limited, the diversified steel producer said full-year sales rose 11.5% to Rs.1.46 trillion from Rs.1.31 trillion a year ago. Net profit for the quarter fell 60% to Rs.49.5 billion compared to net profit of Rs.123.5 billion a year ago.

Tata Steel Limited, in the last one year traded as high as Rs.783.90 in June 2008 and as low as Rs.146.35 in December 2008. Based on the yesterday’s closing price of Rs.387.25 the company has market cap of Rs.287.12 billion.

TVS Motor Company Limited, the automotive vehicles industry said full-year sales rose 14.6% to Rs.3,746.70 crore from Rs.3,270.5 crore a year ago. Net loss for the quarter was Rs.63.2 crore compared to net loss of Rs.28.25 crore a year ago.

TVS Motor Company Limited, in the last one year traded as high as Rs.54.35 in June 2009 and as low as Rs.14.90 in January 2009. Based on the yesterday’s closing price of Rs.44.85 the company has market cap of Rs.10.65 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 81.31 or 0.83% to 9,877.39, Hang Seng index in Hong Kong increased 325.23 or 1.78% to 18,600.26, CSI 300 index in China higher 10.50 or 0.34% to 3,128.42. ASX 200 index in Australia increased 47.80 or 1.24% to 3,903.80. The KL Composite index in Malaysia closed higher 1.66 or 0.15% to 1,075.77.

The Kospi Index in South Korea increased 1.80 or 0.13% to close at 1,394.53.SET index in Thailand closed higher 5.20 or 0.88% to 595.80 and JSE Index in Indonesia decreased 3.98 or 0.19% to 2,040.19. The Sensex index in India increased 419.02 or 2.92% to 14,764.64.