Rates on Hold in India; Adani Power IPO

Mayank Mehta
28 Jul, 2009
New York City

The RBI left its key lending rate unchanged at 3.25% but lifted its inflation outlook in the current financial year. Adani Power Limited initial public offering is oversubscribed by anchor investors. Grasim Industries profit surged 68%.

[R]6:00 PM Mumbai, 8:30 AM New York – The RBI left its key lending rate unchanged at 3.25% but lifted its inflation outlook in the current financial year. Adani Power Limited initial public offering is oversubscribed by anchor investors. Grasim Industries profit surged 68%.[/R]

The Reserve Bank of India left its key lending rate at 3.25% but raised its inflation target for the fiscal year to 5% from 4%. The central bank gave indication that the current accommodative monetary policy may have to be reversed to contain inflation.

The Sensex index in India decreased 43.10 or 0.28 % to 15,331.94 and CNX Nifty index slid 8.20 or 0.18% to 4,564.10. Among the Sensex 30 stocks, 20 advanced and 10 declined.

On BSE trading, 1,718 stocks increased, 957 decreased and 94 were unchanged.

Adani Power Ltd attracted substantially more demand for shares from anchor investors for its initial public offering. The six investors include CLSA and subsidiaries of T Rowe Price and Credit Suisse bid for 94 million shares.

Six anchor investors agreed to pay 95 rupees a share for 52 million shares. The company plans to offer additional 248.8 million shares to investors through subscription beginning today.

Gainers & Losers

Bajaj Hindusthan Ltd added 5.1% or Rs.9.25 to Rs.191.25 after the sugar and ethanol manufacturing company said third quarter sales fell 16.3% to Rs.384 crore from Rs.458.9 crore a year ago. Net profit for the quarter was Rs.60 crore compared to net loss of Rs.35.1 crore a year ago.

Everonn Systems India Limited gained 4.1% or Rs.14.90 to Rs.376.50 an education and training company said first quarter revenues rose 61.3% to Rs.35.91 crore from Rs.22.26 crore a year ago. Net profit for the quarter rose 64% to Rs.5.04 crore or Rs.3.12 per diluted share compared to net profit of Rs.3.07 crore or Rs.2.08 per share a year ago.

Glenmark Pharmaceuticals Limited dropped 2.3% or Rs.2.2% to Rs.258.25 after the Pharmaceutical Company said first quarter sales rose 18% to Rs.543.69 crore from Rs.460.82 crore a year ago. Net profit for the quarter fell 50% to Rs.53.45 crore or Rs.2.07 per diluted share compared to net profit of Rs.115.38 crore or Rs.4.53 per share a year ago.

Grasim Industries fell 2% to Rs 2,831 net profit rose 68.53% to Rs 866.59 crore on a 16.17% increase in total income to Rs 3107.29 crore in first quarter June 2009 over first quarter June 2008.

The Karnataka Bank Ltd decreased 2% or Rs.2.55 to Rs.139.45 after the private sector bank said first quarter net interest income fell 67% to Rs.46.5 crore from Rs.140.8 crore a year ago. Net profit for the quarter rose 94% to Rs.40.1 crore compared to net profit of Rs.20.7 crore a year ago.

Karur Vysya Bank Limited surged 5.8% or Rs.15.95 to Rs.322.00 said first quarter net interest income rose 14.3% to Rs.110.4 crore from Rs.96.6 crore a year ago. Net profit for the quarter rose 130.5% to Rs.70.3 crore compared to net profit of Rs.30.5 crore a year ago.

Kotak Mahindra Bank Limited lost 1.3% or Rs.8.85 to Rs.658.00 after the commercial bank said first quarter net interest income rose 8.5% to Rs.625 crore from Rs.576.1 crore a year ago. Net profit for the quarter rose 71.6% to Rs.257.3 crore compared to net profit of Rs.149.9 crore a year ago.

NTPC Limited jumped 1.1% or Rs.2.40 to Rs.216.85 after the largest power generator said first quarter sales rose 25.8% to Rs.12,005 crore from Rs.9,539.5 crore a year ago. Net profit for the quarter rose 27% to Rs.2,193.6 crore compared to net profit of Rs.1,726.5 crore a year ago.

Punj Lloyd Limited dropped 2.1% or Rs.5.10 to Rs.238.25 after the diversified engineering, procurement & construction conglomerate said first quarter sales 11.5% to Rs.2,955.14 crore from Rs.2,648.75 crore a year ago. Net profit for the quarter rose 11% to Rs.125 crore compared to net profit of Rs.112.43 crore a year ago.

SpiceJet Limited rose 5.7% or Rs.1.10 to Rs.20.15 after the low cost airline said first quarter sales rose 15% to Rs.525 crore from Rs.457 crore a year ago. Net profit for the quarter was Rs.26.34 crore compared to net loss of Rs.129.22 crore a year ago.

Tata Teleservices (Maharashtra) Limited fell 0.1% or Rs.5 to Rs.36.35 after the telecom services provider said first quarter sales fell1.5% to Rs.470.85 crore from Rs.477.96 crore a year ago. Net loss for the quarter was Rs.34.26 crore or Rs.0.18 per diluted share compared to net loss of Rs.34.72 crore or Rs.0.18 per share a year ago.

Twelve real estate stocks rose between 1.13% and 7.78% after the Reserve Bank of India kept key policy rates unchanged at their historically lowest levels at a quarterly monetary policy review today.

The RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier estimate of 4%.

Maruti Suzuki India gained 2.70% to Rs 1,407 after striking a record high of Rs 1416.70 in intra-day trade.

HDFC Bank lost 0.6% or Rs.9.45 to Rs. 1,425.15.

ICICI Bank fell 2.3% or Rs.17.55 to Rs.740.35 and State Bank of India plunged 1.7% or Rs.29.05 to Rs.1,680.50.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 1.40 or 0.01% to 10,087.26, Hang Seng index in Hong Kong increased 372.92 or 1.84% to 20,624.54 and CSI 300 index in China higher 12.19 or 0.33% to 3,755.82. ASX 200 index in Australia increased 29.90 or 0.72% to 4,169.50. The FTSE Bursa KL Composite index in Malaysia closed higher 15.95 or 1.38% to 1,172.38.

The Kospi Index in South Korea increased 1.98 or 0.13% to close at 1,526.03. SET index in Thailand closed higher 4.13 or 0.67% to 621.96 and JSE Index in Indonesia increased 28.00 or 1.27% to 2,237.10. The Sensex index in India decreased 43.10 or 0.28% to 15,331.94.