ACC, ITC, Maruti Earnings Lift India Stocks

Mayank Mehta
23 Jul, 2009
New York City

Stocks in Mumbai trading surged on positive earnings from Maruti Suzuki, ACC, ITC, Biocon and Union Bank of India. Tata Power and Sterlite completed their international capital raising. The latest read on wholesale inflation index showed a decline.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading surged on positive earnings from Maruti Suzuki, ACC, ITC, Biocon and Union Bank of India. Tata Power and Sterlite completed their international capital raising.[/R]

The wholesale price index declined 1.17% for the twelve months ending on July 11 compared to 1.21% fall at the end of the previous week. The wholesale inflation has been declining but consumer price index is still rising.

The Sensex index in India increased 387.92 or 2.61% to 15,231.04 and CNX Nifty index surged 2.8% to 4,523.75. Of the stocks traded on the BSE, 1,797 increased, 856 decreased and 87 were unchanged.

On the BSE trading turnover surged to 8,030 crore rupees from 6,672 crore rupees yesterday and on NSE the turnover declined 19,068 crore rupees from 21,378 crore rupees.

Of the 30 stocks in the Sensex, 28 increased and 2 decreased.

Reserve Bank of India is planning permit the trading of Indian Depository Receipts. The IDRs will attract non-resident Indians and foreign investors and will provide investment in companies that cannot tap the international markets.

Of the 354 companies releasing earnings so far, revenues increased 9.2% and net income surged
35.1% according to the data collected by Capitalmarket.com.

Gainers & Losers

Maruti Suzuki India surged 6.6% to 1,298 rupees after sales in the first quarter increased 31% to 6,709 crore rupees and net income increased 25.2% to 583 crore rupees.

ACC jumped 5.8% after it reported net income increase of 79% to 485.61 crore rupees on sales increase of 15% to 2,138 crore rupees.

Bharat Heavy Electricals increased 0.7% after it reported net profit increased 22.4% to 470.59 crore rupees and sales gained 27.6%.

ITC increased 5.6% after it reported first quarter net profit increased 17.4% to 878.80 crore rupees on sales increase of 5% to 4,220 crore rupees.

Tata Power Company increased 2.6% to 1,150 rupees after it raised $335 million compared to its original expectation of $250 million. The power company priced 14.8 million GDRs at $22.58 each.

Bharti Airtel declined 1.2% after it reported net income surged 31% to 2,687 crore rupees on net sales increase of 13.9% to 9,056 crore rupees. Average monthly revenue per subscriber declined to 278 rupees compared to 305 rupees in the quarter a year ago.

Sterlite Industries increased 5.3% after it completed $1.5 billion offering in ADRs. After the offering the parent Vedanta Resources stake will drop to 57.5% from 61.7%.

Biocon increased 3% after net income in the quarter increased 283% to 57 crore rupees on 96% increase in sales to 71.40 crore rupees.

Reliance Industries increased 3.2% to 2,040 rupees despite the petroleum ministry may issue a notice to the company for violating production sharing guidelines.

Union Bank of India declined 4.6% after the company reported net income surge of 93.7% to 442.19 crore rupees and net revenues increased 34.5% to 3,704 crore rupees. The foreign investors share in the company has reached 18% and any additional investment in the bank will RBI approval.

Mangalore Refinery and Petrochemicals decreased 2.7% after the net income in the first quarter decreased 50% to 420.07 crore rupees on sales decline of 41.5% to 6,298.97 crore rupees.

Reliance Communications increased 5.8% after the company received an order of 10,000 crore rupees for providing transmission and telecom tower access for ten years to Etisalat DB Telecom.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 69.78 or 0.72% to 9,792.94, Hang Seng index in Hong Kong increased 569.53 or 2.96% to 19,817.70 and CSI 300 index in China higher 45.04 or 1.25% to 3,651.97. ASX 200 index in Australia decreased 4.40 or 0.11% to 4,064.10. The FTSE Bursa KL Composite index in Malaysia closed higher 3.45 or 0.30% to 1,152.15.

The Kospi Index in South Korea increased 2.45 or 0.16% to close at 1,496.49. SET index in Thailand closed higher 13.97 or 2.34% to 612.19 and JSE Index in Indonesia increased 35.10 or 1.65% to 2,160.72. The Sensex index in India increased 387.92 or 2.61% to 15,231.04.