Evening Updates 12 Jan 2010

Today,the benchmark Sensex closed with a loss of 104 points on the back of selling in realty,metal and banking stocks and shrugged off better-than-expected November IIP (Index of Industrial Production) data. Weak global cues also weighed on the markets. Earning season kicked off with a good start from Infosys' third quarter results, which were higher than expected. It posted 2.73% jump in its Q3 net profit of Rs 1,582 crore and revenues went up 2.8% at Rs 5,741 crore (QoQ). EBIDTA (earning before interest, depreciation, tax and amortisation) margins increased to 35.49% versus 34.61% (QoQ).
The IIP for the month of November 2009 grew by 11.7% since last November. The IIP growth rate in November 2008 was at 2.5%.
The markets also reacted to these better-than-expected IIP data and the Sensex gained over 70 points in the mid session but again Nifty failed to cross the resistance level of 5300.
Today, Bharti Airtel announced the acquisition of 70% stake in Bangladeshi telecom player, Warid Telecom. The deal was signed after a green signal from Bangladesh Prime Minister Sheikh Hasina, who is on an India visit. Bharti said that the company will invest a total of USD 1 billion in Warid. It will make a fresh investment of USD 300 million. The stock reacted to this news, but profit booking hammered it to close over 2% down
Results Updates :
Nectar Lifesciences has announced its third quarter results. The company's net profit was up at Rs 32 crore versus Rs 6 crore, YoY.
The net sales were up at Rs 260 crore versus Rs 134 crore, YoY.
Bajaj Auto Q3 net profit up 189.17% at Rs 475.1 Cr Vs Rs 164.3 crore, on year-on-year basis (YoY). Net sales increased 57.9% to Rs 3,165.8 crore from Rs 2,004.8 crore (YoY).
Mastek has announced its second quarter results. The company's consolidated net sales were up at Rs 193.2 crore versus Rs 189.4 crore, QoQ. Its consolidated net profit was down at Rs 23.5 crore versus Rs 26.4 crore QoQ.
Manufacturing output was up 12.7% in the month of November as compared to a rise of 2.7% a year earlier.
IIP:India's industrial production surprisingly accelerated in November 2009, beating the most optimistic of predictions, data released by the Government showed on Tuesday. It also reinforced a growing view that the RBI will start reversing its loose money policy at its policy meeting in the last week of this month.
Industrial output, as measured by the Index of Industrial Production (IIP), rose by 11.7% in November 2009 as against expectations of 10%, the Commerce Ministry data revealed. The General Index stood at 298.9 in November 20096 versus 267.6 in the year-ago period.
IIP had grown by 2.5% in November 2008.
The Government also announced that the October's annual industrial growth rate was left unchanged at 10.3%.
Manufacturing output growth stood at 12.7% in November 2009 compared to a rise of 2.7% in the same month a year earlier. Mining output climbed by 10% in the month under review as against 0.7% in November 2008. Electricity generation grew by 3.3% versus 2.6% in November 2008.
During April-November 2009-10, India's industrial production grew by 7.6% as against 4.1% in the corresponding period of last year.
The cumulative growth during the first eight months of the current fiscal year in the three sub-sectors of the IIP stood at 8.3%, 7.7% and 6.1%, respectively compared to 3.4%, 4.2% and 2.8% in April-November 2008-09.
Growth in the output of Basic Goods, Intermediate Goods and Capital Goods category stood at 6%, 19.4% and 12.2%, respectively versus 2.2%, (-)3.9% and 0.5% in the corresponding month of the previous fiscal year.
Output growth in Consumer Goods, Consumer Durables and Consumer Non-durables during November 2009 was placed at 11.1%, 37.3% and 3.1%, respectively compared to 9.4%, 0.3% and 12.4% in November last year.
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