Real Estate and Banking Sector pull Sensex higher

April 25, 2009	(Be the first to rate this story!)  Loading ...
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The key benchmark indices surged in afternoon trade led by buying in banking and realty stocks. Index heavyweight Reliance Industries also recovered. European markets which opened after Indian markets rose in early trade.

The BSE 30-share Sensex was up 118.47 points or 1.08%.

The market was volatile. It edged higher in a volatile early trade. The market slipped into the red later. It recovered in morning trade. Volatility ruled the roost in early afternoon trade. Market spurted in mid-afternoon trade as European stocks rose in early trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,492 stocks advanced as compared to 893 that declined. A total of 71 shares remained unchanged.

From the 30 share Sensex pack 19 stocks gained while rest fell. Tata Motors, Ranbaxy Laboratories and Hindustan Unilever fell by between 0.77% to 2.12%. Jaiprakash Associates, Bharti Airtel, Mahindra & Mahindra rose by between 5.06% to 5.59%.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 0.26% to Rs 1,766.50 even as net profit fell 9.35% to Rs 3546 crore on 23.9% fall in sales to Rs 28,362 crore in Q4 March 2009 over Q4 March 2008. The stock came off the day’s low of Rs 1,725.75 so far during the day. The company announced results after the market hours yesterday. Rate sensitive real estate shares gained on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate Housing Development & Infrastructure rose by between 1.57% to 5.21%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Banking stocks jumped on hopes falling interest rates will boost lending growth. India’s largest bank in terms of assets and branch network State Bank of India (SBI) was up 3.2%. SBI chairman O.P. Bhatt on Tuesday 21 April 2009 said interest rate cuts by the Reserve Bank of India were a signal for commercial banks to lower their rates. He said a decision on whether SBI would lower rates would be taken after a meeting of the bank’s asset-liability. SBI’s advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India’s largest private sector bank by net profit ICICI Bank was up 1.27% to Rs 429.25. Its American depository receipts (ADR) jumped 9.34% on Thursday, 23 April 2009. The stock hit a high of Rs 436 and a low of Rs 421.10 so far during the day. ICICI Bank cut its lending rates by 50 basis points after the central bank cut official interest rates on Tuesday 21 April 2009. The benchmark advance rate, or the rate that it charges its top customers, now stands at 16.25% from 16.75%, effective from Wednesday, 22 April 2009.

ICICI Bank also cut rates for retail customers by 50 basis points. The rates on deposits have been cut between 25 to 50 basis points, with effect from Friday 24 April 2009, the bank said.

India’s second largest private sector bank by operating income HDFC Bank rose 0.41% to Rs 1,097 on strong Q4 results. The stock hit a high of Rs 1,120 and a low of Rs 1,076 so far during the day. Its ADR gained 6.4% on Thursday boosted by the results.

The banks’ net profit rose 33.9% to Rs 630.88 crore on 53.1% rise in operating income to Rs 5,365,52 crore in Q4 March 2009 over Q4 March 2008. The results were more or less in line with market expectations. The bank announced the results after trading hours yesterday.

HDFC bank’s gross non performing assets (NPA) stood at 1.98% of advances as of 31 March 2009 compared to 1.91% as of 31 December 2008. Net NPA as of 31 March 2009 was at 0.63% of net advances.

India’s biggest dedicated housing finance firm by operating income HDFC rose 1.18%.

State Bank of Bikaner & Jaipur was locked at 5% upper limit at Rs 274.45 after net profit surged 63.30% to Rs 148.29 crore in Q4 March 2009 over Q4 March 2008.

Corporation Bank rose 1.59% as net profit rose 26.7% to Rs 260.49 crore on 50.17% rise in total income to Rs 2,199.64 crore in Q4 March 2009 over Q4 March 2008.

Outsourcing focussed IT stocks rose on hopes aggressive measures by the United States to revive the economy may bear fruit. US is the biggest market for Indian IT firms.. A firm rupee also weighed on IT stocks. India’s third largest software services exporter, Wipro fell 2.06% to Rs 306.50 on profit taking after last two day’s of gains. However, its ADR rose 5.63% overnight. However the stock came off the day’s low of Rs 301.10.Wipro reported 14.8% rise in Q4 consolidated net profit at Rs 1010 crore on 13.5% rise in total income to Rs 6,583.20 crore in Q4 March 2009 over Q4 March 2008. The company announced the results on Wednesday.

News Published Under:   Real Estate India, Banking and Finance, Real Estate Companies |

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