Reliance Drops; Tata Motors Rises in India

Mayank Mehta
27 Jul, 2009
New York City

The benchmark index in Mumbai traded sideways after Reliance Industries profit declined. Tata Motors earnings gained on accounting changes. Banks and cement companies reported better than expected earnings. DLF surged 4% ahead of earnings. MRF Limited soared 17% after its net tripled.

[R]6:00 PM Mumbai, 8:30 AM New York – The benchmark index in Mumbai traded sideways after Reliance Industries profit declined. Tata Motors earnings gained on accounting changes. Banks and cement companies report better than expected earnings. DLF surges ahead of earnings.[/R]

Stocks edged lower in the afternoon trading after Reliance Industries reported quarterly profit declined for the third time in a row. Banks, cement companies and Tata Motors reported higher than expected earnings.

The Sensex index in India decreased 3.92 or 0.03% to 15,375.04 and CNX Nifty index surged 3.75 or 0.08% to 4,572.30.

Among the Sensex 30 stocks, 16 declined and 14 gained. On BSE trading, 1,672 stocks increased, 985 decreased and 87 were unchanged.

On NSE daily turnover decreased to 19,164 crore rupees compared to 20,529 crore rupees.

Rupee increased 0.1% to 48.17 after corporate earnings lifted the sentiment in currency and stock trading.

Gainers & Losers

Andhra Cements Ltd decreased 2.8% or 0.75 to Rs.26.00 after cement maker said first quarter revenues rose 20% to Rs.106.92 crore from Rs.89.19 crore a year ago. Net profit for the quarter fell 8% to Rs.17.13 crore compared to net profit of Rs.18.42 crore a year ago.

Bank of Baroda declined 3.8% or Rs.16.40 to Rs.416.00 after the public sector lender said first quarter total income rose 24.4% to Rs.4,735.15 crore from Rs.3,806.37 crore a year ago. Net profit for the quarter rose 85% to Rs.685.38 crore compared to net profit of Rs.370.86 crore a year ago.

Brandhouse Retails Limited added 4.3% or Rs.1.05 to Rs.25.10 after the fashion retailing company said first quarter sales rose 38.6% to Rs.125.06 crore from Rs.90.22 crore a year ago. Net profit for the quarter rose 114% to Rs.3.68 crore or Rs.0.69 per diluted share compared to net profit of Rs.1.72 crore or Rs.2.73 per share a year ago.

Bata India Limited dropped 2.2% or Rs.4.35 to Rs.166.25 said second quarter sales rose 8% to Rs.308.62 crore from Rs.285.78 crore a year ago. Net profit for the quarter rose 13.3% to Rs.18.35 crore or Rs.2.86 per diluted share compared to net profit of Rs.16.20 crore or Rs.2.52 per share a year ago.

Castrol India Limited rose 9.2% or Rs.37.40 to Rs.441.50 after the lubricant company said second quarter sales rose 2.5% to Rs.640 crore from Rs.624 crore a year ago. Net profit for the quarter rose 54.6% to Rs.128 crore compared to net profit of Rs.82.8 crore a year ago.

Finolex Industries Limited jumped 4.9% or Rs.2.35 to Rs.49.60 after the electrical cable maker said first quarter sales fell 26% to Rs.359 crore from Rs.485 crore a year ago. Net profit for the quarter rose 308.5% to Rs.47.8 crore compared to net profit of Rs.11.7 crore a year ago.

IFGL Refractories Limited surged 6.4% or Rs.1.40 to Rs.23.25 after the manufacturer and trader of specialized refractories said first quarter sales fell 28.7% to Rs.34.5 crore from Rs.48.4 crore a year ago. Net profit for the quarter fell 60.3% to Rs.2.5 crore or Rs.0.74 per diluted share compared to net profit of Rs.6.3 crore or Rs.1.81 per share a year ago.

Kamat Hotels (India) Limited fell 5.9% or Rs.3.45 to Rs.54.40 after the hospitality company said first quarter sales fell 38.2% to Rs.20.7 crore from Rs.33.5 crore a year ago. Net loss for the quarter was Rs.5.6 crore or Rs.4.27 per diluted share compared to net profit of Rs.1.4 crore or Rs.1.04 per share a year ago.

MRF Limited advanced 16.8% or Rs.643.90 to Rs.4465.20 after the manufacturer of tyres said third quarter sales rose 12.5% to Rs.1433.5 crore from Rs.1,274.4 crore a year ago. Net profit s for the quarter rose 294% to Rs.125.7 crore compared to net profit of Rs.31.9 crore a year ago.

R Systems International Limited dropped 10.3% or Rs.9.15 to Rs.79.50 after the global provider of information technology solutions said second quarter sales fell 9% to Rs.82.49 crore from Rs.90.55 crore a year ago. Net loss for the quarter was Rs.16.2 crore or Rs.12.68 per diluted share compared to net profit of Rs.4.64 crore or Rs.3.38 per share a year ago.

Reliance Industries decreased 3.8% to 1,940 rupees after it reported third quarterly earnings decline in a row on lower refining margins and fall in crude oil prices.

Bank of India plunged 4.2% or Rs.14.75 to Rs.333.00 after net profit rose 3.98% to Rs. 584.32 crore on 22.0% rise in total income to Rs 5,023.61 crore in first quarter June 2009 over first quarter June 2008.

HDFC Bank lost 1.1% or Rs.17.15 to Rs. 1,434.6 0.

ICICI Bank fell 1.2% or Rs.9.25 to Rs.757.60 State Bank of India gained 0.6% or Rs. 11.05 to Rs.1,709.55.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 144.11 or 1.45% to 10,088.66, Hang Seng index in Hong Kong increased 268.83 or 1.35% to 20,251.62 and CSI 300 index in China higher 76.07 or 2.07% to 3,743.63. ASX 200 index in Australia increased 49.80 or 1.22% to 4,139.60. The FTSE Bursa KL Composite index in Malaysia closed higher 0.55 or 0.05% to 1,156.43.

The Kospi Index in South Korea increased 21.46 or 1.43% to close at 1,524.05. SET index in Thailand closed higher 3.59 or 0.58% to 617.83 and JSE Index in Indonesia increased 23.45 or 1.07% to 2,209.10. The Sensex index in India decreased 3.92 or 0.03% to 15,375.04.