Indian Stocks Surge; HDFC Bank Earnings Rise

Trupti Mehta
14 Jul, 2009
New York City

Stocks in Mumbai trading rebounded on the rainy forecast and firmer global markets. Energy and metals sectors and stocks in banking gained in trading. HDFC Bank and State Bank of Bikaner & Jaipur advanced on earnings. Aban Offshore surges on Morgan Stanley recommendation.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading rebounded on the rainy forecast and firmer global markets. Energy and metals sectors and stocks in banking gained in trading. HDFC Bank and State Bank of Bikaner & Jaipur advanced on earnings.[/R]

The weather bureau forecasted monsoon rains to intensify this week lifted market sentiment and firming of global markets contributed as well.

The Sensex index in India increased 453.38 or 3.38% to 13,853.70 and CNX Nifty index added 137.35 or 3.5% to 4,111.40. Among the Sensex 30 stocks, 29 increased and 1 decreased.

On BSE trading, 1,917 stocks increased, 623 decreased and 78 were unchanged.

Gainers & Losers

Aban Offshore Ltd surged 21% to 787.05 rupees after Morgan Stanley revised its price target 88% to 1,114 rupees. The news was reported in several local media publications.

Reliance Industries surged 4.3% to 1,823 rupees as market rally lifted energy and mining related stocks.

ONGC added 0.8% after the state controlled oil company agreed to invest $730 million in an oil block in the State of Rajasthan operated by Cairn India.

Sterlite Industries added 3.2% on media reports that its wholly owned subsidiary Sterlite Energy is exploring possibilities of raising 3,000 crore rupees.

Bharat Heavy Electricals increased 4.4% after it received an order of 640 crore rupees from Adhunik Power and Natural Resources in Jharkhand.

Sintex Industries increased 3.9% to after it reported fiscal first quarter net income increase from a year ago of 10.3% to 48.22 crore rupees.

Banks closed higher.

HDFC Bank first quarter net profit increased 30.5% to 606.11 crore rupees and net income increae of 21.9% to 5,136.75 crore rupees.

State Bank of Bikaner & Jaipur surged daily limit of 5% to 354.25 rupees after it reported fiscal first quarter net income increase of 125.5% from a year ago to 147.30 crore rupees.

Welspun-Gujarat Stahl Ltd surged 6.1% after Life Insurance Corp acquired ten lakhs (1 million) shares at 173 rupees each according to the filing with the BSE.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 211.48 or 2.34% to 9,261.81, Hang Seng index in Hong Kong increased 631.10 or 3.66% to 17,885.73 and CSI 300 index in China higher 93.74 or 2.79% to 3,454.75. The ASX 200 index in Australia increased 129.60 or 3.47% to 3,867.10. The FTSE Bursa KL Composite index in Malaysia closed higher 15.97 or 1.50% to 1,079.63.

The Kospi Index in South Korea increased 7.44 or 0.54% to close at 1,385.56. SET index in Thailand closed higher 15.20 or 2.70% to 577.75 and JSE Index in Indonesia increased 36.44 or 1.80% to 2,056.58. The Sensex index in India increased 453.38 or 3.38% to 13,853.70.