Indian stocks rise on earnings expectations
Monday, 27 July 2009
MUMBAI, July 26 (Bloomberg): India's stocks rose, driving the benchmark to its highest in more than a month. Tata Motors Ltd. paced gains among automakers after Maruti Suzuki India Ltd. reported earnings that beat analysts' forecasts.
Tata Motors advanced the most in two months on expectations earnings due Monday will beat estimates. Sterlite Industries (India) Ltd. jumped to a one-month high as metal prices soared.
"Most results have been above estimates so far," said Gopal Agrawal, head of equities at Mirae Asset India Investment Co. in Mumbai. "If the earnings momentum continues, then the markets can be re-rated."
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 147.92, or 1 per cent, to 15,378.96, its highest since June 11. The S&P CNX Nifty Index on the National Stock Exchange added 1 per cent to 4,568.55. The BSE 200 Index increased 1.1 per cent to 1,874.43.
Overseas funds bought a net 1.46 billion rupees ($30 million) of Indian stocks July 22, taking their total investments in equities this year to $6.43 billion, the Securities & Exchange Board of India said on its Web site.
The Indian stock market's value surpassed the $1 trillion mark this week for the first time since July 5, data compiled by Bloomberg show.
Tata Motors Ltd., India's biggest truckmaker and manufacturer of the world's smallest car, the Nano, jumped 9.6 per cent to 372.85 rupees.
Maruti Suzuki, the nation's biggest carmaker, surged for a second day following a 25 per cent climb in first-quarter profit on higher exports and demand for its new hatchbacks. The maker of half the cars sold in the country rose 6.4 per cent to 1,378.25 rupees, the highest since its listing in July 2003.
Hero Honda Motors Ltd., India's biggest motorcycle maker, advanced 4.1 per cent to 1,735.1 rupees. Mahindra & Mahindra Ltd., the nation's largest maker of sport-utility vehicles and tractors, gained 3.6 per cent to 830.9 rupees.
Twelve of the 30 Sensex companies have reported their results so far, with 10 beating analysts' expectations.
Dr. Reddy's Laboratories climbed 3.8 per cent to 814.95 rupees after BNP Paribas initiated coverage of the stock with a "buy" rating, saying that "the company's earnings trajectory will remain robust on the back of a strong product portfolio."
Idea Cellular Ltd., India's fifth-largest wireless carrier, gained the most in a week after profit jumped 14 per cent. The stock rose 4.6 per cent to 81.55 rupees.
Jaiprakash Associates Ltd., the biggest maker of dams, climbed 5.2 per cent to 241.65 rupees ahead of its results tomorrow.
The Sensex has risen 59 per cent this year, the sixth-best performer among 89 global benchmark measures tracked by Bloomberg. The gauge is valued at 17.6 times earnings following the gain, twice the 8.8 multiple it was trading at in March.
India's $1.2 trillion economy may expand 7 per cent in the year to March 2010, Prime Minister Manmohan Singh said earlier this month. The nation should aim for growth of between 8 per cent and 9 per cent in the medium term, he said.
Sterlite Industries (India) Ltd., the nation's biggest copper producer, led gains among metal producers after commodity prices climbed. Sterlite rose 3.3 per cent to 654.1 rupees. Tata Steel Ltd., the biggest producer of the alloy, advanced 6.4 per cent to 442.5 rupees. Hindalco Industries Ltd., the biggest aluminum producer, climbed 3.3 per cent to 93.8 rupees.
A gauge of six metals on the London Metals Exchange rose for a ninth day yesterday, the longest winning streak since December 2005. The measure, comprising copper, aluminum, lead, tin, zinc and nickel, rose 1.3 per cent yesterday.
Tata Motors advanced the most in two months on expectations earnings due Monday will beat estimates. Sterlite Industries (India) Ltd. jumped to a one-month high as metal prices soared.
"Most results have been above estimates so far," said Gopal Agrawal, head of equities at Mirae Asset India Investment Co. in Mumbai. "If the earnings momentum continues, then the markets can be re-rated."
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 147.92, or 1 per cent, to 15,378.96, its highest since June 11. The S&P CNX Nifty Index on the National Stock Exchange added 1 per cent to 4,568.55. The BSE 200 Index increased 1.1 per cent to 1,874.43.
Overseas funds bought a net 1.46 billion rupees ($30 million) of Indian stocks July 22, taking their total investments in equities this year to $6.43 billion, the Securities & Exchange Board of India said on its Web site.
The Indian stock market's value surpassed the $1 trillion mark this week for the first time since July 5, data compiled by Bloomberg show.
Tata Motors Ltd., India's biggest truckmaker and manufacturer of the world's smallest car, the Nano, jumped 9.6 per cent to 372.85 rupees.
Maruti Suzuki, the nation's biggest carmaker, surged for a second day following a 25 per cent climb in first-quarter profit on higher exports and demand for its new hatchbacks. The maker of half the cars sold in the country rose 6.4 per cent to 1,378.25 rupees, the highest since its listing in July 2003.
Hero Honda Motors Ltd., India's biggest motorcycle maker, advanced 4.1 per cent to 1,735.1 rupees. Mahindra & Mahindra Ltd., the nation's largest maker of sport-utility vehicles and tractors, gained 3.6 per cent to 830.9 rupees.
Twelve of the 30 Sensex companies have reported their results so far, with 10 beating analysts' expectations.
Dr. Reddy's Laboratories climbed 3.8 per cent to 814.95 rupees after BNP Paribas initiated coverage of the stock with a "buy" rating, saying that "the company's earnings trajectory will remain robust on the back of a strong product portfolio."
Idea Cellular Ltd., India's fifth-largest wireless carrier, gained the most in a week after profit jumped 14 per cent. The stock rose 4.6 per cent to 81.55 rupees.
Jaiprakash Associates Ltd., the biggest maker of dams, climbed 5.2 per cent to 241.65 rupees ahead of its results tomorrow.
The Sensex has risen 59 per cent this year, the sixth-best performer among 89 global benchmark measures tracked by Bloomberg. The gauge is valued at 17.6 times earnings following the gain, twice the 8.8 multiple it was trading at in March.
India's $1.2 trillion economy may expand 7 per cent in the year to March 2010, Prime Minister Manmohan Singh said earlier this month. The nation should aim for growth of between 8 per cent and 9 per cent in the medium term, he said.
Sterlite Industries (India) Ltd., the nation's biggest copper producer, led gains among metal producers after commodity prices climbed. Sterlite rose 3.3 per cent to 654.1 rupees. Tata Steel Ltd., the biggest producer of the alloy, advanced 6.4 per cent to 442.5 rupees. Hindalco Industries Ltd., the biggest aluminum producer, climbed 3.3 per cent to 93.8 rupees.
A gauge of six metals on the London Metals Exchange rose for a ninth day yesterday, the longest winning streak since December 2005. The measure, comprising copper, aluminum, lead, tin, zinc and nickel, rose 1.3 per cent yesterday.