Earnings Propel Stocks in India; HDFC Rises

Mayank Mehta
14 Oct, 2009
New York City

Industrials and infrastructure related stocks advanced in India after positive comments from policymakers and better than expected earnings. HDFC, HDFC Bank, Bajaj Auto Finance and Indus Bank reported higher than expected earnings. Rupee edged higher ahead of Diwali celebration.

[R]6:00 PM Mumbai, 8:30 AM New York – Industrials and infrastructure related stocks advanced in India after positive comments from policymakers and better than expected earnings. HDFC, HDFC Bank, Bajaj Auto Finance and Indus Bank reported higher than expected earnings. Rupee edged higher as international fund flows continue ahead of Diwali celebration.[/R]

Stocks in Mumbai trading increased as the earnings season picked up the pace. Better than expected earnings from Baja Auto Finance and HDFC Bank and Indus Bank lifted the market sentiment. Housing Development and Finance Corp reported 24% increase in earnings in the latest quarter.

The market sentiment was positive after chairman of Prime Minister’s Economic Advisory Council said that the economic stimulus will remain in place until the end of the current fiscal year. C. Rangarajan also said that the Reserve Bank of India will maintain its favorable stance towards its monetary policy in the period.

Special audit conducted by an agency of the government said that Reliance Communications revenues in the fiscal year ending in March 2008 have been inflated by 2,915 crore rupees.

The Sensex index in India increased 204.44 or 1.2% to 17,231.11 and CNX Nifty index rose 63.95 or 1.2% to 5,118.20. Among the Sensex 30 stocks, 5 declined and 25 rose.

On the BSE trading, 1,675 stocks advanced, 1,075 declined and 81 were unchanged.

Rupee edged higher 30 paisa to 46.18 against one dollar.

Mahindra & Mahindra increased 6.1% to Rs 970.95 and Tata Motors added 4.8% to Rs 574.75. Sterlite Industries (India) Ltd advanced 5.8% to Rs 855.75 after metal prices in Asia climbed higher.

Gainers & Losers

Banco Products (India) Limited surged 18.1% to Rs 58.40 after the manufacturer of gaskets and radiators said second quarter total income rose 22% to Rs 98.2 crore from Rs 80.65 crore a year ago. Net profit for the quarter rose 99.5% to Rs 21.09 crore or Rs 2.95 per diluted share compared to net profit of Rs 10.57 crore or Rs 1.49 per share a year ago.

Bajaj Auto Finance Limited gained 13.9% to Rs 324.05 after the non-banking finance company said second quarter total income rose 60% to Rs 219.7 crore from Rs 137.4 crore a year ago. Net profit for the quarter rose 372% to Rs 21.7 crore are compared to net profit of Rs 4.6 crore a year ago.

Bharat Heavy Electricals Limited added 3.05% to Rs 2,498.70 after the company is looking to set up a factory with Indian Railways to manufacture electrically powered trains.

Can Fin Homes Ltd added 5.1% to Rs 90.25 after the housing finance company said second quarter sales were Rs 53 crore and net profit for the quarter was Rs 10.3 crore.

HDFC Bank Limited added 0.3% to Rs 1,707.00 after second quarter net interest income rose 4.8% to Rs 1,955.8 crore from Rs 1,866.4 crore a year ago. Net profit for the quarter rose 30.2% to Rs 687.5 crore compared to net profit of Rs 528 crore a year ago.

IndusInd Bank Ltd increased 5.3% to Rs 124.10 after second quarter net interest income rose 98.3% to Rs 208.6 crore from Rs 105.2 crore a year ago. Net profit for the quarter rose 131% to Rs 77.8 crore compared to net profit of Rs 33.7 crore a year ago.

InfoTech Enterprises Limited fell 4.3% to Rs 244.75 after the global technology services and solutions company said second quarter sales rose 1.7% to Rs 237 crore from Rs 233 crore a year ago. Net profit for the quarter fell 24% to Rs 35 crore compared to net profit of Rs 46 crore a year ago.

Reliance Communications Limited decreased 4.4% to Rs 236.30 said that special auditor has pointed out that the company inflated revenues by Rs 2,915 crore in the financial year ending in March 2008.

Steel Authority of India Limited advanced 2.0% to Rs 178.45 after the joint venture between the company and Tata Steel that provides an e-commerce services will expand in the business to consumer segment.

Suven Life Sciences Limited added 4.8% to Rs 29.00 after the company’s Alzheimer drug received patent approvals in India, Mexico, South Africa, Singapore, New Zealand, Korea, Eurasia, Australia and Europe markets.

Surana Telecom and Power Limited increased 9.7% to Rs 47.25 after the company said it would spin off its solar business and merge it with Surana Ventures.

Subhash Projects and Marketing Limited rose 3.3% to Rs 160.25 an infrastructure development company won an order of Rs 212 crore for setting up a sewage network in Kanpur, Uttar Pradesh.

Transformers & Rectifiers (India) Limited dropped 3.3% to Rs 367.25 after the manufacturer of power, furnace and rectifier transformers said second quarter sales fell 22% to Rs 88.5 crore from Rs 114 crore a year ago. Net profit for the quarter fell 24.4% to Rs 9.6 crore compared to net profit of Rs 12.7 crore a year ago.

Unitech Limited increased 2.9% to Rs 103.90 after the real estate developer said it sold properties worth Rs 3,913 crore in the first six months of the fiscal 2010.

Zydus Wellness Limited added 1.7% to Rs 184.20 after the pharma group said second quarter sales rose 275% to Rs 64.9 crore from Rs 17.3 crore a year ago. Net profit for the quarter rose 467% to Rs 8.5 crore compared to net profit of Rs 1.5 crore a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 16.35 or 0.16% to 10,060.21, Hang Seng index in Hong Kong increased 419.12 or 1.95% to 21,886.48, and CSI 300 index in China higher 28.88 or 0.90% to 3,227.40. ASX 200 index in Australia increased 45.40 or 0.95% to 4,831.10. The FTSE Bursa KL Composite index in Malaysia was higher 13.33 or 1.08% to 1,246.84.

The Kospi Index in South Korea increased 20.16 or 1.24% to close at 1,649.09 SET Index in Thailand closed lower 15.20 or 2.04% to 731.47. JSE Index in Indonesia increased 39.73 or 1.61% to 2,511.72. The Sensex index in India increased 204.44 or 1.20% to 17,231.11.