IT Earnings Firm in India; Ambanis In Court

Mayank Mehta
20 Oct, 2009
New York City

Rupee traded higher after Diwali holidays as international investors continue to add to holdings. Stocks closed lower but stayed firm near the recent highs. Government plans to sell 5% stake in NTPC. Reliance Industries commenced its arguments in the Supreme Court in India.

[R]6:00 PM Mumbai, 8:30 AM New York – Rupee traded higher after Diwali holidays as international investors continue to add to holdings. Stocks closed lower but stayed firm near the recent highs. Government plans to sell 5% stake in NTPC. Reliance Industries commenced its arguments in the Supreme Court in India.[R]

The Sensex index in India decreased 103.00 or 0.5% to 17,223.01 and CNX Nifty index fell 27.35 or 0.5% to 5,114.45. Among the Sensex 30 stocks, 18 declined and 12 rose.

On the BSE trading, 1,315 stocks advanced, 1,466 declined and 52 were unchanged.

Oil marketing companies slipped as crude oil prices traded near one-year high. State controlled oil marketing companies sell crude oil at fixed prices set by the government that are generally lower than the market prices.

Rupee edged higher 28 paisa to 46.01 against one dollar.

Reliance Industries commenced its arguments in the Supreme Court which is asked to decide who has the right to set the price for natural gas from the KG oil field. The field has proven reserve of at 200,000 crore rupees ($37 billion). The arguments are expected to last over a month and the court is expected to take at least two months to deliver its verdict.

Gainers & Losers

Apollo Tyres Ltd climbed 4.5% to Rs 54.25 after second quarter sales rose 24.4% to Rs 1,220.3 crore from Rs 980.8 crore a year ago. Net profit for the quarter rose 1,209% to Rs 102.1 crore compared to net profit of Rs 7.8 crore a year ago.

Emkay Global Financial Services Limited second quarter revenues rose 4% to Rs 27.7 crore from Rs 26.6 crore a year ago. Net profit for the quarter rose 788% to Rs 2.32 crore or Rs 0.96 per diluted share compared to net profit of Rs 26.2 lacs or Rs 0.11 per share a year ago.

Ess Dee Aluminium Limited advanced 1.9% to Rs 372.00 after the aluminum foil-based and PVC based primary packaging company said that the board of directors of the company at its meeting held on October 16, 2009, has decided to convene an Extra Ordinary General Meeting on November 10, 2009.

Edelweiss Capital Limited an integrated financial services company dropped 3.7% to Rs 502.50.

Garware Offshore Services Limited added 3.3% to Rs 179.45 after the oil and gas exploration company the oil and gas exploration said second quarter sales rose 11% to Rs 54 crore from Rs 48.8 crore a year ago. Net profit for the quarter was Rs 6 crore compared to net loss of Rs 15 crore a year ago.

IBN18 Broadcast Limited decreased 0.05% to Rs 97.90 after the media company said second quarter revenues rose 346% to Rs 136.1 crore from Rs 30.5 crore a year ago. Net loss for the quarter was Rs 82.3 crore compared to net loss of Rs 10.8 crore a year ago.

Network 18 Media and Investments Limited rose 0.3% to Rs 94.00 after the media company said second quarter revenues rose 31.3% to Rs 282.9 crore from Rs 215.4 crore a year ago. Net loss for the quarter was Rs 83.4 crore or Rs 8.69 per diluted share compared to net loss of Rs 16.8 crore or Rs 2.72 per share a year ago.

NTPC Limited increased 1.2% to Rs 216.60 after India''s cabinet on Monday approved a 5% stake sale in state-run power producer, a minister said.

NIIT Technologies Ltd rose 2.4% to Rs 130.35 an information technology solutions company said second quarter revenues fell 12.5% to Rs 226.3 crore from Rs 258.7 crore a year ago. Net profit for the quarter fell 12.5% to Rs 32.1 crore or Rs 5.47 per diluted share compared to net profit of Rs 36.7 crore or Rs 6.25 per share a year ago.

Polaris Software Lab Limited increased 1.5% to Rs 150.25 after the financial technology company said second quarter sales rose 3.6% to Rs 338.3 crore from Rs 351 crore a year ago. Net profit for the quarter rose 2.3% to Rs 35.2 crore or Rs 3.55 per diluted share compared to net profit of Rs 34.4 crore or Rs 3.48 per share a year ago.

Sterlite Technologies Limited fell 0.8% to Rs 312.50 after the global manufacturer of wire and cable solutions for the telecom and power industries said second quarter net profit jumped 799.1% to Rs 54.67 crore.

Prakash Industries Ltd rose 1.1% to Rs 154.50 after the steel maker said second quarter sales fell 20.5% to Rs 377 crore from Rs 474.4 crore a year ago. Net profit for the quarter rose 42% to Rs 68 crore compared to net profit of Rs 48 crore a year ago.

Reliance Industries Limited fell 1.2% to Rs 2,195.80 said is in preliminary talks with Valero Energy Corp., Sunoco, Inc. and Flying J to buy refineries. Royal Dutch Shell plc''s three refineries in Europe are also on the company''s radar.

Sterlite Technologies Limited decreased 0.9% to Rs 312.95 after the optical fiber and telecom cable manufacturer said second quarter sales fell 30% to Rs 465.8 crore from Rs 665.6 crore a year ago. Net profit for the quarter rose 131% to Rs 54.7 crore or Rs 8.00 per diluted share compared to net profit of Rs 6.1 crore or Rs 0.93 per share a year ago.

Tech Mahindra Limited rose 0.3% to Rs 941.40 after the provider of information technology services said second quarter revenues rose 2% to Rs1,141.8 crore from Rs 1,164.8 crore a year ago. Net profit for the quarter fell 44% to Rs 169 crore compared to net profit of Rs 302 crore a year ago.

Subex Limited increased 4.6% to Rs 82.25 after the global provider of operations and business support systems said second quarter revenues fell 23% to Rs 109.7 crore from Rs 142.1 crore a year ago. Net loss for the quarter was Rs 3.20 crore or Rs 0.92 per diluted share compared to net loss of Rs 71.7 crore or Rs 20.57 per share a year ago.

Unitech Limited added 2.1% to Rs 106.30 after the real estate developer said that the government approved a proposal by Norway''s Telenor ASA to raise its stake in a telecommunications joint venture to as much as 74%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 100.33 or 0.98% to 10,336.84, Hang Seng index in Hong Kong increased 184.50 or 0.83% to 22,384.96, and CSI 300 index in China higher 48.42 or 1.45% to 3,377.57. ASX 200 index in Australia increased 53.40 or 1.11% to 4,846.20. The FTSE Bursa KL Composite index in Malaysia was higher 4.25 or 0.34% to 1,265.74.

The Kospi Index in South Korea increased 10.08 or 0.61% to close at 1,659.15 SET Index in Thailand closed lower 6.01 or 0.82% to 725.60. JSE Index in Indonesia decreased 18.71 or 0.74% to 2,502.22. The Sensex index in India decreased 103.00 or 0.59% to 17,223.01.