Auto Sales in India Sustain Growth; Hathway IPO

Mayank Mehta
01 Feb, 2010
New York City

Auto sales in January surge in India. Maruti Suzuki sales increased 33% and Mahindra & Mahindra sales surged 70%. Hathway Cable & Datacom Ltd plans offer 27.8 million shares in a public offering. Reliance Communications, Titan Industries and Procter & Gamble close higher on earnings.

[R]6:00 PM Mumbai, 8:30 AM New York – Auto sales in January surge in India. Maruti Suzuki sales increased 33% and Mahindra & Mahindra sales surged 70%. Hathway Cable & Datacom Ltd plans offer 27.8 million shares in a public offering. Reliance Communications, Titan Industries and Procter & Gamble close higher on earnings.[/R]

Stocks closed unchanged at close and December exports surged 9.3%. Imports in the month gained faster at 20.3%. Refineries closed higher on the expectations that retail petrol and natural gas prices may be revised. Auto sale in January surged.

December exports increased 9.3% to $14.61 billion and rose 4.8% when measured in rupees. Exports in the nine months ending in the month increased 20.3% in the dollars and 13.7% in rupees. Imports in the month rose 27% to $24.75 billion and in the nine-month period increased 22% from a year ago period.

The Sensex index in India decreased 1.93 or 0.01% to 16,356.03 and CNX Nifty index rose 17.65 or 0.36% to 4,899.70. Among the Sensex 30 stocks, 21 rose and 9 fell.

On BSE trading, 2,162 stocks advanced, 704 declined and 42 were unchanged.

Consumer durables, metal, realty, healthcare stocks rose. IT stocks reversed early losses. Reliance Industries edged lower in volatile trade.

Reserve Bank of India Governor D Subbarao said on Monday that bond yields will be under pressure if the government borrows more than the central bank expects in the next fiscal year beginning in April.

Oil exploration firms surged after the new oil secretary, S. Sundareshan, said that the government will decide in less than two weeks if retail prices of natural gas needs to be revised.

Indian Oil gained 4.6%, Bharat Petroleum increased 8% and Hindustan Petroleum Corp added 4.7%.

Gainers & Losers

Areva T&D India Limited increased 3.6% to Rs 280.55 after the company received two orders worth Rs 110 crore from Delhi Transco Ltd.

IVRCL Infrastructures & Projects Limited advanced 2.9% to Rs 316.75 after the company said that secured an order for Rs 1,125 crore to build highways in Tamil Nadu and Kerala from National Highways Authority of India.

Maruti Suzuki India Limited added 1.0% to Rs 1,404.50 after January sales increased 33% to 95,649 vehicles.

Mahindra & Mahindra Ltd increased 2.9% to Rs 1,047.50 after vehicle sales surged 70% to 30,149 from 17,611 a year ago.

Mahanagar Telephone Nigam Limited decreased 1.0% to Rs 74.95 after the telecommunications company said third quarter sales fell 19% to Rs 902 crore from Rs 1,112 crore a year ago. Net loss for the quarter was Rs 895 crore or Rs 13.91 per diluted share compared to net profit of Rs 53.1 crore or Rs 0.85 per share a year ago.

Monnet Ispat & Energy Limited declined 0.7% to Rs 381.70 after the manufacturer of sponge, steel and ferro alloys said third quarter sales fell 7% to Rs 372.2 crore from Rs 400.1 crore a year ago. Net profit for the quarter rose 103% to Rs 68.01 crore or Rs 14.18 per diluted share compared to net profit of Rs 33.50 crore or Rs 6.80 per share a year ago.

NHPC Limited rose 0.4% to Rs 33.30 after the hydroelectric power generating company said third quarter sales rose 182% to Rs 1,213.5 crore from Rs 430 crore a year ago. Net profit for the quarter was Rs 582 crore or Rs 0.50 per diluted share compared to net loss of Rs 54 crore or Rs 0.05 per share a year ago.

Procter & Gamble Hygiene and Healthcare Ltd soared 11% to 1,761.55 after the latest quarterly profit surged 58%.

Reliance Capital Limited fell 1.7% to Rs 790.00 after the finance company said third quarter sales fell 14% to Rs 1,352.9 crore from Rs 1,569.8 crore a year ago. Net profit for the quarter fell 52% to Rs 63.1 crore compared to net profit of Rs 131.5 crore a year ago.

Reliance Communications Limited increased 2.3% to Rs 173.80 after the telecommunications company said third quarter sales fell 6% to Rs 5,129 crore from Rs 5,441.5 crore a year ago. Net profit for the quarter fell 21.4% to Rs 1,108 crore or Rs 5.15 per diluted share compared to net profit of Rs 1,410 crore or Rs 6.49 per share a year ago.

Titan Industries Ltd soared 14% to Rs 1,708.50 after third quarter profit increased nearly six fold to 75.4 crore rupees.

Suzlon Energy Limited climbed 1.8% to Rs 78.65 after the wind power company said third quarter sales fell 19% to Rs 5,590 crore from Rs 6,922 crore a year ago. Net profit for the quarter was Rs 14.10 crore or Rs 0.09 per diluted share compared to net loss of Rs 65 crore or Rs 0.43 per share a year ago.

Thermax Limited rose 0.7% to Rs 651.05 after the solution provider in energy and environment engineering said third quarter sales fell 8% to Rs 726 crore from Rs 788 crore a year ago. Net profit for the quarter fell 22% to Rs 56.5 crore compared to net profit of Rs 72.3 crore a year ago.

Unitech Limited climbed 2.1% to Rs 76.00 after the real estate developer said third quarter sales rose 58% to Rs 774.5 crore from Rs 489.4 crore a year ago. Net profit for the quarter rose 29.4% to Rs 176 crore or Rs 0.72 per diluted share compared to net profit of Rs 136 crore or Rs 0.84 per share a year ago.