India Stocks at 5-Month High

Mayank Mehta
31 Jul, 2009
New York City

Stocks in India reached five-month high on the back of earnings. Hindalco, Reliance Infrastructure, Great Eastern Shipping and Welspun reported better than expected earnings. Rain deficit at the end of this week has declined to 18% from 27% two weeks ago on above normal rain.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India reached five-month high on the back of earnings. Hindalco, Reliance Infrastructure, Great Eastern Shipping and Welspun reported better than expected earnings. Rain deficit at the end of this week has declined to 18% from 27% two weeks ago on above normal rain.[/R]

The Sensex index in India increased 282.35 or 1.83% to 15,670.31 and CNX Nifty index rose 65 or 1.42 % to 4,636.45. Among the Sensex 30 stocks, 23 rose and rest declined.

On BSE trading, 1,395 stocks advanced, 1300 declined and 100 were unchanged.

Agriculture Minister Sharad Pawar said that summer crops sugarcane, oilseeds and cotton have covered more than half the normal area, and sowing is likely to rise.

India''s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.63% to Rs 1,930.80 on bargain hunting and the prospect of additional gas discovery in the Bay of Bengal. There is at least 30 million cubic feet of gas that has to be tapped the field.

India''s monsoon rains were 18% below normal in the week to 29 July after steady and above normal rains in the last two weeks.

Gainers & Losers

ABB Limited added 1.6% or Rs.11.00 to Rs.698.00 after the power and automation technologies company said second quarter revenues fell 7% to Rs.1,526 crore from Rs.1,638 crore a year ago. Net profit for the quarter fell 37% to Rs.83.6 crore compared to net profit of Rs.131.8 crore a year ago.

DLF Limited decreased 1.7% or Rs.7.20 to Rs.394.90 after the real estate development company said first quarter sales fell 56.7% to Rs.1649.86 crore from Rs.3,810.62 crore a year ago. Net profit for the quarter fell 79% to Rs.396 crore or Rs.2.33 per diluted share compared to net profit of Rs.1,864 crore or Rs.10.92 per share a year ago.

Eicher Motors Limited advanced 1.8% or Rs.6.90 to Rs.375.00 after the commercial vehicle manufacturer said first quarter sales fell 83.3% to Rs.90.03 crore from Rs.537.98 crore a year ago. Net profit for the quarter fell 12.5% to Rs.6.07 crore or Rs.2.25 per diluted share compared to net profit of Rs.6.94 crore or Rs.2.47 per share a year ago.

Hindalco Industries Limited climbed 6.5% or Rs.6.15 to Rs.100.10 after the aluminium maker said first quarter sales fell 16.2% to Rs.3,871 crore from Rs.4,620 crore a year ago. Net profit for the quarter fell 31% to Rs.480 crore compared to net profit of Rs.696.8 crore a year ago.

ICICI Bank Limited gained 0.1% or Rs.0.95 to Rs.756 after said first quarter total income fell 2.2% to Rs.9,223 crore from Rs.9,429 crore a year ago. Net profit for the quarter rose 20.6% to Rs.878.22 crore or Rs.7.87 per diluted share compared to net profit of Rs.728 crore or Rs.6.51 per share a year ago.

Mahindra & Mahindra Limited rose 0.7% Rs.6.65 to Rs.858.70 an automobile company said first quarter revenues rose 26.3% to Rs.4,751.3 crore from Rs.3,760.7 crore a year ago. Net profit for the quarter rose 151.7% to Rs.400.9 crore compared to net profit of Rs.159.3 crore a year ago.

National Aluminium Company Limited jumped 3.9% or Rs.11.60 to Rs.305.00 after the aluminium Industry said first quarter sales fell 37% to Rs.920 crore from Rs.1,460 crore a year ago. Net profit for the quarter fell 76% to Rs.127 crore compared to net profit of Rs.525 crore a year ago.

Syndicate Bank Ltd gained 3.8% or Rs.3.05 to Rs.83.25 said first quarter net interest income rose 16.4% to Rs.585.7 crore from Rs.503.3 crore a year ago. Net profit for the quarter rose 197.6% to Rs.261.6 crore compared to net profit of Rs.87.9 crore a year ago.

The Federal Bank Limited added 0.9% or Rs.2.15 to Rs.240.05 said first quarter net interest income rose 4.3% to Rs.290.1 crore from Rs.278.2 crore a year ago. Net profit for the quarter rose 100% to Rs.136.4 crore compared to net profit of Rs.68.1 crore a year ago.

The Great Eastern Shipping Company Ltd surged 2.5% or Rs.6.50 to Rs.259.00 after the shipping company said first quarter sales fell 19.6% to Rs.721 crore from Rs.897 crore a year ago. Net profit for the quarter fell 64% to Rs.154 crore compared to net profit of Rs.427 crore a year ago.

TVS Motor Company Limited slid 6.9% or Rs.4.40 to Rs.58.80 after the automotive vehicles industry said first quarter sales rose 7% to Rs.975.6 crore from Rs.911 crore a year ago. Net profit for the quarter rose 158.6% to Rs.18.1 crore compared to net profit of Rs.7 crore a year ago.

Welspun India Limited rose 5.0% or Rs.1.85 to Rs.38.85 after the home textiles company said first quarter total income rose 46.7% to Rs.417.7 crore from Rs.284.8 crore a year ago. Net profit for the quarter was Rs.33.3 crore compared to net profit of Rs.74 lacs a year ago.

HDFC Bank rose 2.5% or Rs.36.65 to Rs.1,496.45. ICICI Bank climbed 0.4% or Rs.3.70 to Rs.759.05. State Bank of India surged 5.2% or Rs.91.20 to Rs.1,814.00.