Banks in India Lead Decliners

Mayank Mehta
21 Oct, 2009
New York City

Sesa Goa fell after earnings but indicated three-fold iron ore production increase to meet China demand. Banks declined after the Reserve Bank of India ruling may force higher competition among lenders and lower rates to borrowers. State Bank of India raised $750 million through the sale of bonds.

[R]6:00 PM Mumbai, 8:30 AM New York – Sesa Goa fell after earnings but indicated three-fold iron ore production increase to meet China demand. Banks declined after the Reserve Bank of India ruling may force higher competition among lenders and lower rates to borrowers. State Bank of India raised $750 million through the sale of 5-year bonds.[/R]

The Sensex Index decreased 213.84 or 1.2% to 17,009.17 and CNX Nifty index fell 50.85 or 0.9% to 5,063.60. Among the Sensex 30 stocks, 24 declined and 6 rose.

On the BSE trading, 1,173 stocks advanced, 1,555 declined and 95 were unchanged.

Japanese car maker Nissan today said it will consider launching electric vehicles in the Indian market within the next few years as part of its global plan to roll out cleaner and alternative fuel technology.

Rupee edged lower 33 paisa to 46.34 against the dollar.

State Bank of India decreased 3.4% to 2,386.10, HDFC Bank decreased 1.8% to 1,661.10 and ICICI Bank Ltd dropped 1.6% to Rs 929.10.

State Bank of India raised $750 million through the benchmark bond sales to foreign investors that yielded 4.5% due October 2014. The five-year bonds were priced to yield 226.4 higher than the U.S. Treasury bonds.

Gainers & Losers

Ajanta Pharma Limited surged 10% to Rs 101.85 after the company said its board will meet on October 29 to consider shares buyback.

Alfa Laval (India) Limited fell 1.4% to Rs 1,225.00 and the company said it received 65 crore rupee order from PetroVietnam Group with a delivery by 2010 and scheduled commissioning by 2011.

Axis Bank Limited fell 1.8% to Rs 976.35 said second quarter net profit surged 32% to Rs 531.64 crore.

Bank of India dropped 2.8% to Rs 441.60 after the Reserve Bank of India, barred further buying in the state-run bank''s shares by the foreign institutional investors without its prior permission.

Banco Products (India) Limited the business of manufacturing gaskets and radiators declined 8.5% to Rs 69.25.

Bharat Seats Limited added 4.6% to Rs 20.37 after the manufacturer of car seats, carpets for automobiles and motorcycle seats said second quarter sales rose 64% to Rs 84 crore from Rs 51.2 crore a year ago. Net profit for the quarter rose 1,936% to Rs 1.34 crore compared to net profit of Rs 6.5 lacs a year ago.

Chambal Fertilisers and Chemicals Limited fell 2.6% to Rs 54.75 after the manufacturer of fertilizers said second quarter sales fell 44% to Rs 963.83 crore from Rs 1,734.44 crore a year ago. Net profit for the quarter rose 35% to Rs 64.6 crore compared to net profit of Rs 47.56 crore a year ago.

Gati Limited added 5.4% to Rs 63.15 after the express distribution and supply chain solutions said second quarter revenues rose 8.3% to Rs 171.46 crore from Rs 158.32 crore a year ago. Net profit for the quarter was Rs 2.27 crore compared to net profit of Rs 42 lacs a year ago.

HCL Technologies Limited increased 4.7% to Rs 325.00 and the company with Microsoft plan to sell retail banking solution to banks in the Asia-Pacific region.

HDFC Bank Limited fell 1.6% to Rs 1,659.50.

Hero Honda Motors Limited fell 0.3% to Rs 1,656.00 ahead of fiscal second quarter earnings release.

Hindustan Construction Company Limited slipped 2.1% to Rs 135.20 and the company was selected to for an engineering contract of 167 crore from Gujarat Water Infrastructure Limited for water supply distribution.

Hindustan Copper surged 10% to Rs 255.50 after media reports suggested that the government is likely to sell a stake in the company to investors.

International Conveyors Limited rose 5.0% to Rs 704.95 after the company''s board approved a 1-to-1 bonus issue and a 10-for-1 stock split.

Jaiprakash Associates Limited dropped 1.7% to Rs 260.45 ahead of fiscal second quarter earnings.

JK Paper Limited advanced 5.1% to Rs 45.85 after the manufacturer of integrated paper and board said second quarter revenues rose 1% to Rs 285.35 crore from Rs 282.9 crore a year ago. Net profit for the quarter rose 158% to Rs 23.4 crore or Rs 2.91 per diluted share compared to net profit of Rs 9.07 crore or Rs 1.13 per share a year ago.

Jyoti Structures Limited increased 2.0% to Rs 158.30 said that consortium of Areva T & D and the company has recently signed a long term agreement with Maharashtra State Electricity Transmission Company for the turnkey design and construction of 220KV and 132KV substation and associated lines.

Radico Khaitan Limited advanced 4.5% to Rs 119.05 after the liquor manufacturer said second quarter revenues rose 6% to Rs 171.8 crore from Rs 161.8 crore a year ago. Net profit for the quarter rose 61% to Rs 9.71 crore or Rs 0.95 per diluted share compared to net profit of Rs 6.03 crore or Rs 0.59 per share a year ago.

Sakthi Sugars Limited rose 4.9% to Rs 99.65 after the manufacturer of sugar said second quarter sales rose 87% to Rs 415 crore from Rs 221.9 crore a year ago. Net profit for the quarter rose 1,909.3% to Rs 43.4 crore compared to net profit of Rs 2.16 crore a year ago.

Sesa Goa Limited fell 7.1% to Rs 322.15 an iron ore producer and exporter said second quarter revenues fell 31.6% to Rs 632 crore from Rs 924 crore a year ago. Net profit for the quarter fell 50.5% to Rs 166.5 crore or Rs 2.05 per diluted share compared to net profit of Rs 336.6 crore or Rs 4.28 per share a year ago.
The iron ore miner plans to set up a steel production in Jharkhand and also plans to expand its iron ore production to 50 million tons from 15 million tons in the next three years.

Sterlite Technologies Limited rose 3.2% to Rs 323.00 has emerged as the lowest bidder for the country''s first private power transmission project Power Finance Corporation, the bid coordinator, said late on Tuesday.

TVS Electronics Limited dropped 2.8% to Rs 23.55 an automation information technology products and solutions provider said second quarter revenues fell 6.2% to Rs 51.4 crore from Rs 54.8 crore a year ago. Net loss for the quarter was Rs 0.48 crore compared to net profit of Rs 0.54 crore a year ago.

United Spirits Limited decreased 2.2% to Rs 1,019.75 after the alcohol maker completed Rs 1,615.60 crore in an institutional share placement.

Yes Bank Limited decreased 2.9% to Rs 246.40 after the banking company said second quarter net interest income rose 30.5% to Rs 160 crore from Rs 122.6 crore a year ago. Net profit for the quarter rose 75.5% to Rs 111.6 crore compared to net profit of Rs 63.6 crore a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 3.45 or 0.03% to 10,333.39, Hang Seng index in Hong Kong decreased 66.85 or 0.30% to 22,318.11, and CSI 300 index in China lower 8.29 or 0.25% to 3,369.28. ASX 200 index in Australia decreased 7.60 or 0.16% to 4,838.60. The FTSE Bursa KL Composite index in Malaysia was lower 5.68 or 0.45% to 1,260.06.

The Kospi Index in South Korea decreased 5.29 or 0.32% to close at 1,653.86 SET index in Thailand closed lower 9.25 or 1.27% to 716.35. JSE Index in Indonesia decreased 25.42 or 1.02% to 2,476.80. The Sensex index in India decreased 213.84 or 1.24% to 17,009.17.