Investors in India Optimistic on Earnings

Mayank Mehta
01 Apr, 2010
New York City

Wholesale inflation index hovered near 14% in February and exports surged 35%. For the eleven months exports rose 11%. TVS Motor sales in March jump 24%. The Sensex index in closed higher ahead of auto sales data and optimistic view on earnings.

[R]6:00 PM Mumbai, 8:30 AM New York – Wholesale inflation index hovered near 14% in February and exports surged 35%. For the eleven months exports rose 11%. TVS Motor sales in March jump 24%. The Sensex index in closed higher ahead of auto sales data and optimistic view on earnings.[/R]

The Sensex index in India increased 164.85 or 0.94% to 17,692.62 and CNX Nifty index rose 41.40 or 0.79% to 5,290.50. Among the Sensex 30 stocks, 21 rose and 9 fell.

On BSE trading, 2,248 stocks advanced, 650 declined and 63 were unchanged. IT stocks were in demand and banks gained. Metal, infrastructure and the capital goods sector also logged gains.

Reliance Industries gained over 1.5% on expectations of robust fourth quarter earnings.

The prime minister promised on Thursday to launch a guarantee of free elementary education, in a fresh sign the government was focusing on big-ticket programs to consolidate its rural and poor voters.

Food inflation rose marginally to 16.3% for the week ended March 20 on higher prices of pulses and milk.

The wholesale price index increased 0.4% to 283.4 from 282.3 for the previous week. For the year ending in the previous week average inflation surged to 13.86% compared to 5.20% in the same period a year ago.

February exports surged 34.8% to $16.09 billion and rose 26.7% when measured in rupees. Exports in the eleven months to February increased 11.3% in the dollars and 6.1% in rupees.

Imports in the month soared 66.4% to $25.05 billion and in the eleven-month period increased 56.4% from a year ago period.

Gainers & Losers

Aban Offshore Limited rose 2.4% to Rs 1,193.10 after the offshore drilling solutions provider estimated to generate about $41 million from a latest order for deployment of the jack-up rig deep driller.

Anik Industries Limited increased 8.8% to Rs 57.00 ahead of the board meeting today to consider raising funds through various modes.

Apollo Tyres Ltd added 1.2% to Rs 71.80 after the company raised product prices across categories between 2% and 4% to offset the surge in cost of rubber, a senior official said on Thursday.

Bharat Heavy Electricals Limited rose 1.4% to Rs 2,419.10 after the company reported fourth quarter net profit in the quarter rose 37% to Rs 4,287 crore compared to net profit of Rs 3,138 crore.

Bodal Chemicals Ltd gained 4.9% to Rs 77.25 after the company traded at 52-week high on stock-split plan.

Larsen & Toubro Limited rose 1.4% to Rs 1,649.85 after the company signed a preliminary agreement with Rolls-Royce of UK to explore opportunities in nuclear power.

Maruti Suzuki India Limited dropped 1.3% to Rs 1,396.50 ahead of March sales data.

Noida Toll Bridge Company Limited climbed 3.2% to Rs 33.65 after the road transport and highways ministry increased toll rates on 24 stretches of public-funded highways from today.

Reliance Infrastructure Limited rose 1.6% to Rs 1,014.90 after the founders increased stake to 42.73% from 37.74%, according to a company statement.

Sayaji Hotels Limited climbed 4.9% to Rs 118.00 after US-based Clearwater Capital Partners made an open offer to acquire an additional 20% stake in the Vadodara based hotel operator.

Shree Ashtavinayak Cine Vision Limited advanced 4.9% to Rs 12.06 after the company surges on buyback plan.

Steel Strips Wheels Limited gained 4.5% to Rs 124.00 after the metal wheel rims maker posted about 28.6% growth in sales in March from a year ago.

Surana Telecom and Power Limited gained 5.2% to Rs 40.45 after the company received orders of Rs 36 crore for supply of SPV Cells & Modules.

Tata Communications Limited added 0.5% to Rs 281.95 tracking gains in New York listed stock.

TVS Motor Company Limited rose 2.7% to Rs 84.40 after the company''s total two wheeler sales rose 24.3% to 1,46,736 units in March 2010 from a year ago.