Stocks in India Struggle; Godrej Sales Up

Mayank Mehta
25 Jan, 2010
New York City

Stocks in Mumbai traded lower. Crompton Greaves traded at one-year high ahead of bonus issue decision. Indian government plans to raise $3.8 billion from a stake sale in the mining company NMDC. McNally Godrej Consumer Products sales surge 53%.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower. Crompton Greaves traded at one-year high ahead of bonus issue decision. Indian government plans to raise $3.8 billion from a stake sale in the mining company NMDC. McNally Godrej Consumer Products sales surge 53%.[/R]

The Sensex index in India decreased 79.22 or 0.47% to 16,780.46 and CNX Nifty index fell 28.10 or 0.56% to 5,007.90. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 1,107 stocks advanced, 1,748 declined and 60 were unchanged.

The infrastructure sector declined as investors turned cautious on valuations and resource sector stocks fell on lower commodities prices.

Private sector banking shares declined as investors turned cautious on rate sensitive stocks ahead of the Reserve Bank of India''s monetary policy review meeting on January 29.

Gainers & Losers

Andhra Bank fell 0.2% to Rs 106.65 after the bank said third quarter net interest income rose 29% to Rs 583 crore from Rs 451.9 crore a year ago. Net profit for the quarter rose 29.3% to Rs 275 crore compared to net profit of Rs 212.7 crore a year ago.

Blue Star Limited fell 0.8% to Rs 385.00 after the central air conditioning and commercial refrigeration company said third quarter sales rose 5% to Rs 593 crore from Rs 566 crore a year ago. Net profit for the quarter rose 31.3% to Rs 42.3 crore compared to net profit of Rs 32.2 crore a year ago.

Crompton Greaves Limited added 2.2% to Rs 421.20 after the electrical products and services said its board will meet on January 28 to consider issuing bonus shares.

Godrej Consumer Products Limited dropped 1.5% to Rs 247.20 after the manufacturer of toiletries said third quarter sales rose 53% to Rs 517 crore from Rs 338 crore a year ago. Net profit for the quarter rose 112.5% to Rs 85.1 crore or Rs 2.76 per diluted share compared to net profit of Rs 40.1 crore or Rs 1.55 per share a year ago.

Gujarat Alkalies and Chemicals Limited slipped 5.2% to Rs 142.30 after the chemical company said third quarter sales fell 3% to Rs 309.4 crore from Rs 319.1 crore a year ago. Net profit for the quarter fell 40.6% to Rs 19.3 crore compared to net profit of Rs 32.5 crore a year ago.

HCL Technologies Limited fell 5.6% to Rs 361.15 after the software company said second quarter sales rose 23% to Rs 3,032.5 crore from Rs 2,469.1 crore a year ago. Net profit for the quarter fell 20.5% to Rs 296.7 crore or Rs 17.2 per diluted share compared to net profit of Rs 373.3 crore or Rs 22.3 per share a year ago.

JK Paper Limited rose 0.5% to Rs 49.60.

K.M. Sugar Mills Ltd increased 5.8% to Rs 43.60 after the company said its board will meet on January 29 to consider a 5-for-1 stock split.

The India Cements Limited rose 4.0% to Rs 113.30.

Mahindra & Mahindra Limited decreased 5.2% to Rs 1,072.35 after the automobile company said third quarter sales rose 79% to Rs 4,478.7 crore from Rs 2,506.3 crore a year ago. Net profit for the quarter rose 276% to Rs 413.7 crore compared to net profit of Rs 110 crore a year ago.

McNally Bharat Engineering Co. Limited dropped 2.4% to Rs 261.00 after the company announced that it has received an order for material handling systems for Bongaigaon Thermal Power Project operated by NTPC for a value of Rs 4.38 billion.

Monsanto India Limited declined 3.8% to Rs 1,868.45 after the producer of agricultural inputs said third quarter sales rose 2.4% to Rs 67.2 crore from Rs 65.6 crore a year ago. Net profit for the quarter rose 19.5% to Rs 14.7 crore compared to net profit of Rs 12.3 crore a year ago.

NMDC Limited fell 2.0% to fell 2.1% to Rs 521.00 after the business of iron ore and other minerals and services said the Indian government plans to raise Rs 17,400 crore ($3.8 billion) by selling a 8.38% stake in state controlled miner.

Shree Renuka Sugars Limited increased 2.3% to Rs 226.00 after the company''s board approved issuing one bonus share for one equity share held.

Voltas Limited dropped 4.6% to Rs 171.85 after the engineering solutions provider said third quarter sales rose 6% to Rs 912.3 crore from Rs 862.5 crore a year ago. Net profit for the quarter rose 62% to Rs 68.8 crore compared to net profit of Rs 42.4 crore a year ago.

Zydus Wellness Limited advanced 8.9% to Rs 279.05 after the maker of consumer products said third quarter sales rose 41.7% to Rs 75.1 crore from Rs 53 crore a year ago. Net profit for the quarter rose 104% to Rs 14.3 crore or Rs 3.67 per diluted share compared to net profit of Rs 7 crore or Rs 1.78 per share a year ago.