India Inflation Rises; ONGC, Reliance in Focus

Mayank Mehta
29 Oct, 2009
New York City

The wholesale price index increased at a faster pace. Reliance Industries reported fourth quarterly net decline in a row. ONGC net increased 5.8%. The largest property developer DLF Ltd net dropped 80%. Mahindra & Mahindra gained after reporting sharply higher earnings. NDTV reported quarterly loss.

[R]6:00 PM Mumbai, 8:30 AM New York – The wholesale price index increased at a faster pace. Reliance Industries reported fourth quarterly net decline in a row. ONGC net increased 5.8%. The largest property developer DLF Ltd net dropped 80%.[/R]

Stocks in India closed lower on mixed earnings and rising wholesale prices.

Earnings at Reliance Industries declined on weak refining margins and lower demand. DLF Ltd revenues in the quarter dropped nearly half and earnings plunged 80%. Wholesale price index increased in the week ending on October 17 to 1.5% from the rise of 1.2% in the previous week.

The Sensex index in India decreased 230.77 or 1.4% to 16,052.72 and CNX Nifty index fell 76.45 or 1.5% to 4,749.70. Among the Sensex 30 stocks, 22 declined and 8 rose.

On BSE trading, 818 stocks advanced, 1,848 declined and 69 were unchanged.

Banks have approached the Reserve Bank of India to allow loan write-offs to be treated as part of the 70% loan loss coverage mandated by the regulator.

Rupee edged lower 25 paisa to 47.59 against one dollar.

Gainers & Losers

Ambuja Cements Limited rose 2.6% to Rs 89.95 after the manufacture of cement said third quarter net profit rose 27.3% to Rs 318.48 crore.

The Bombay Dyeing & Manufacturing Company Limited decreased 2.6% to Rs 391.90 after the textile company said second quarter sales rose 45% to Rs 367 crore from Rs 253.3 crore a year ago. Net loss for the quarter was Rs 11 crore compared to net loss of Rs 104 crore a year ago.

Bank of India plunged 10.0% to Rs 367.70 after it said second quarter net profit plunged 57.6% to Rs 323.34 crore.

Consolidated Construction Consortium Ltd declined 0.7% to Rs 347.15 an integrated construction service provider said second quarter sales fell 4% to Rs 451.3 crore from Rs 467.1 crore a year ago. Net profit for the quarter rose 10.5% to Rs 21.1 crore compared to net profit of Rs 19.1 crore a year ago.

Corporation Bank fell 0.5% to Rs 426.00 said second quarter net profit jumped 52.3% to Rs 291.67 crore.

Dalmia Cement (Bharat) Limited dropped 5.8% to Rs 147.90 after the cement manufacturer said second quarter sales rose 24.5% to Rs 559 crore from Rs 449 crore a year ago. Net profit for the quarter rose 33.9% to Rs 53.9 crore or Rs 6.65 per diluted share compared to net profit of Rs 40.2 crore or Rs 4.97 per share a year ago.

Diamond Power Infrastructure Ltd rose 0.05% to Rs 203.00 after the transmission and conductor manufacturer said that it has approved the issue of bonus shares to existing shareholders of the company in the ratio of one bonus shares for every three existing share.

EIH Limited fell 2.9% to Rs 124.00 after the hospitality and related services said second quarter net loss to Rs 9.65 crore compared to net profit of Rs 31.31 crore a year ago.

Elecon Engineering Company Limited fell 4.6% to Rs 86.00 after the manufacturer of power transmission and material handling equipment said second quarter net profit declined 32.8% to Rs 10.77 crore.

Everest Kanto Cylinder Limited the manufacture of high pressure seamless gas cylinders and pressure vessels fell 7.1% to Rs 142.20.

Indian Overseas Bank dropped 7.1% to Rs 107.70 said second quarter net profit tumbled 50.9% to Rs 176.04 crore.

KSK Energy Ventures Limited fell 1.4% to Rs 196.00 after the power projects developer said second quarter net profit declined 40.3% to Rs 26.97 crore.

Mahindra & Mahindra Limited rose 3.9% to Rs 927.75 after the automaker said second quarter net profit rose 185% to Rs 702.94 crore.

Mercator Lines Limited fell 4.5% to Rs 50.60 after the shipping and related activities said second quarter net loss to Rs 29.19 crore.

New Delhi Television Limited fell 2.9% to Rs 136.50 said second quarter sales rose 16.7% to Rs 140.37 crore from Rs 120.27 crore a year ago. Net loss for the quarter was Rs 85.59 crore or Rs 13.65 per diluted share compared to net loss of Rs 119.4 crore or Rs 19.07 per share a year ago.

Puravankara Projects Limited rose 6.7% to Rs 99.50 after the property builder said second quarter net profit rose 36.6% to Rs 64.29 crore.

Power Grid Corporation of India Limited rose 0.7% to Rs 108.30 said second quarter sales rose 10% to Rs 1,748.6 crore from Rs 1,587.7 crore a year ago. Net profit for the quarter rose 16% to Rs 459.97 crore compared to net profit of Rs 396.4 crore a year ago.

Pratibha Industries Limited rose 1.6% to Rs 209.50 after the company secured a project to build multi-level parking at New Delhi railway station that operates high speed line to the airport.

Shoppers Stop Limited increased 4.6% to Rs 287.00 after consumer products retailer swung to second quarter net profit of Rs 12.06 crore compared to net loss of Rs 11.02 crore a year ago.

Sundram Fasteners Limited increased 5.1% to Rs 46.00 after the manufacturer of automotive components said second quarter net profit rose 105.7% to Rs 18.87 crore.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 183.95 or 1.83% to 9,891.10, Hang Seng index in Hong Kong decreased 496.59 or 2.28% to 21,264.99, and CSI 300 index in China lower 82.28 or 2.47% to 3,247.05. ASX 200 index in Australia decreased 110.40 or 2.36% to 4,574.70. The FTSE Bursa KL Composite index in Malaysia was lower 7.30 or 0.58% to 1,241.75.

The Kospi Index in South Korea decreased 23.86 or 1.48% to close at 1,585.85, SET index in Thailand closed lower 13.85 or 1.97% to 690.10. JSE Index in Indonesia decreased 11.28 or 0.48% to 2,344.03. The Sensex index in India decreased 230.77 or 1.42% to 16,052.72.