Rate Worries Drage Sensex; Reliance Net Surges

Mayank Mehta
22 Jan, 2010
New York City

Investors in India sold stocks ahead of the RBI meeting. Reliance increased its share of sales in the domestic market and quarterly revenues surged 80%. Bharti Airtel sales rise 1.4%. Discount carrier SpiceJet swings to a profit. Corporation Bank net surges 19%.

[R]6:00 PM Mumbai, 8:30 AM New York – Investors in India sold stocks ahead of the RBI meeting. Reliance increased its share of sales in the domestic market and quarterly revenues surged 80%. Bharti Airtel sales rise 1.4%. Discount carrier SpiceJet swings to a profit. Corporation Bank net surges 19%.[/R]

Investors focused on a barrage of earnings from banks, airlines, refiners and engineering companies. Earnings from companies are in line with expectations but stocks declined ahead of the RBI meeting on Jan 29.

The Sensex index in India decreased 191.46 or 1.12% to 16,859.68 and CNX Nifty index fell 58.15 or 1.14% to 5,036. Among the Sensex 30 stocks, 5 rose and 25 fell.

On BSE trading, 873 stocks advanced, 2,041 declined and 56 were unchanged.

Bank stocks declined as investors turned cautious ahead of the Reserve Bank of India''s quarterly monetary policy review meet on January 29. State Bank of India, HDFC Bank Ltd and Axis Bank fell at least 1.7%.

Auto stocks were mixed ahead of third quarter earnings. Metal stocks declined.

Rupee edged lower 23 paisa to 46.27 against one dollar.

Gainers & Losers

Allahabad Bank decreased 1.5% to Rs 134.30 after the bank said third quarter net interest income rose 12% to Rs 675.6 crore from Rs 604.1 crore a year ago. Net profit for the quarter fell 6.5% to Rs 345.4 crore compared to net profit of Rs 369.5 crore a year ago.

Apar Industries Limited added 1.7% to Rs 189.00 after the manufacturer of conductors and transformer/speciality oils said third quarter sales fell 17.5% to Rs 520 crore from Rs 630 crore a year ago. Net profit for the quarter was Rs 22 crore or Rs 6.87 per diluted share compared to net loss of Rs 1.0 crore or Rs 0.32 per share a year ago.

Asian Paints Limited declined 2.4% to Rs 1,766.90 after the paint company said third quarter sales rose 27% to Rs 1,278 crore from Rs 1,007 crore a year ago. Net profit for the quarter rose 258% to Rs 179 crore compared to net profit of Rs 50 crore a year ago.

Bajaj Electricals Limited fell 0.3% to Rs 872.10 after the lighting and consumer durables maker said third quarter sales rose 39.6% to Rs 592 crore from Rs 424 crore a year ago. Net profit for the quarter rose 76% to Rs 34.1 crore compared to net profit of Rs 19.4 crore a year ago.

Bharti Airtel Limited decreased 0.2% to Rs 321.35 after the provider of telecommunication services said third quarter sales rose 1.4% to Rs 9,772 crore from Rs 9,633 crore a year ago. Net profit for the quarter rose 2.3% to Rs 2,210 crore compared to net profit of Rs 2,159 crore a year ago.

Corporation Bank dropped 0.7% to Rs 445.15 after the bank said third quarter total income rose 10% to Rs 21,122.9 crore from Rs 19,055.12 crore a year ago. Net profit for the quarter rose 18.9% to Rs 305 crore or Rs 21.26 per diluted share compared to net profit of Rs 256.5 crore or Rs 17.88 per share a year ago.

Hindustan Construction Company Limited slipped 4.5% to Rs 138.90 an infrastructure company said third quarter sales rose 15.3% to Rs 945 crore from Rs 819.4 crore a year ago. Net profit for the quarter fell 36.6% to Rs 14.7 crore compared to net profit of Rs 23.2 crore a year ago.

Hindustan Copper Limited surged 10% to Rs 606.95 after the mining ministry approved the stake sale in the company.

Hindustan Zinc Limited added 0.1% to Rs 1,184.85 after the producer of refined zinc said third quarter sales rose 115% to Rs 2,216.7 crore from Rs 1,031.4 crore a year ago. Net profit for the quarter rose 211% to Rs 1,148.7 crore compared to net profit of Rs 369 crore a year ago.

ITC Limited rose 2.9% to Rs 251.25 after the cigarettes, hotels, paperboards, packaging and agri-exports company said third quarter sales rose 18.2% to Rs 4,531.85 crore from Rs 3,833.31 crore a year ago. Net profit for the quarter rose 26.7% to Rs 1,144.17 crore compared to net profit of Rs 903.21 crore a year ago.

Mahindra Forgings Limited slipped 5.6% to Rs 122.95 after the providers of forging parts and axle beam announced that it has proposed to raise funds by issue of equity shares not exceeding 1,75,00,000 equity shares of face value Rs 10 each at a premium to QIBs under qualified institutional placement.

Neyveli Lignite Corporation Limited fell 0.1% to Rs 163.60 after the lignite mine said third quarter sales rose 30.3% to Rs 863 crore from Rs 662 crore a year ago. Net profit for the quarter rose 65.6% to Rs 371 crore compared to net profit of Rs 224 crore a year ago.

Reliance Industries Limited fell 0.01% to Rs 1,051.60 an oil & gas company said third quarter sales rose 80% to Rs 56,856 crore from Rs 31,563 crore a year ago. Net profit for the quarter rose 14.5% to Rs 4,008 crore compared to net profit of Rs 3,501 crore a year ago.

The largest crude oil refining company also reopened 600 gas stations and increased its share of petrol sale in the domestic market. Media estimates suggest that the company may have sold as much as 48% of quarterly refined crude production to local customer after it removed its “export only status” with the government.

SpiceJet Limited surged 10.1% to Rs 58.75 an Indian low-fare airline said third quarter sales rose 36% to Rs 642 crore from Rs 472 crore a year ago. Net profit for the quarter was Rs 109 crore compared to net loss of Rs 18 crore a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 277.86 or 2.56% to 10,590.55, and Hang Seng index in Hong Kong decreased 136.49 or 0.65% to 20,762.18, and CSI 300 index in China lower 42.38 or 1.24% to 3,366.20. ASX 200 index in Australia decreased 76.60 or 1.59% to 4,750.60. The FTSE Bursa KL Composite index in Malaysia was lower 7.91 or 0.60% to 1,300.45.

The Kospi Index in South Korea decreased 37.66 or 2.19% to close at 1,684.35. SET index in Thailand closed lower 4.89 or 0.68% to 714.10. JSE Index in Indonesia decreased 28.04 or 1.06% to 2,610.34. The Sensex index in India decreased 191.46 or 1.12% to 16,859.68.