India’s stocks rose. Bank of Baroda and Tata Teleservices (Maharashtra) Ltd. advanced after reporting quarterly earnings.
State-owned Bank of Baroda gained after its first-quarter net income climbed 25 percent. Tata Teleservices, a mobile phone operator, surged the most in six weeks after reporting its first quarterly profit on record. DLF Ltd. declined after its earnings fell short of analysts’ estimates.
“Companies reporting good numbers are being rewarded,” said Kaushik Dani, a Mumbai-based fund manager with Peerless Mutual Fund, which manages $322 million in assets. “Those missing estimates or giving poor guidance were not preferred by investors.”
The Bombay Stock Exchange’s Sensitive Index, or Sensex, gained 34.63, or 0.2 percent, to 17,992.00, after swinging between gains and losses at least 16 times. The gauge has climbed 12 percent from this year’s most recent low on May 25.
The S&P CNX Nifty Index on the National Stock Exchange rose 0.2 percent to 5,408.90. The BSE 200 Index increased 0.2 percent to 2,292.61. The gauges may have been more volatile today as futures contracts rolled over from July to August.
Bank of Baroda rose 2.5 percent to 734.2 rupees, its biggest gain in a month. The lender reported a 25 percent increase in quarterly profit to 8.59 billion rupees ($184 million). Separately, the company said it plans to raise 20 billion rupees selling debt and shares.
Tata Teleservices soared 6.8 percent to 22.8 rupees, its steepest climb since June 16., after posting first-quarter net income of 5.58 billion rupees. The stock dropped 36 percent in the past year.
DLF lost 0.9 percent to 309.1 rupees. DLF reported first-quarter profit of 4.11 billion rupees ($88 million), below the 4.55 billion rupee average estimate of 19 analysts in a Bloomberg survey. Shares of DLF have declined 14 percent this year.
Reliance Industries Ltd., India’s most valuable company, lost 1.1 percent to 1,010.15 rupees after being cut to “equal-weight” from “overweight” by Vinay Jaising and Rakesh Sethia, analysts at Morgan Stanley, who cited a slowdown in the ramp up of gas production. It was downgraded to “add” from “buy” by Bhaskar Chakraborty, an analyst at IIFL Ltd.
HCL Technologies Ltd., a software maker, advanced 1.5 percent to 378.05 rupees after reporting fourth-quarter net income of 2.38 billion rupees. The company returned to profit a year earlier after a quarterly loss in 2008.
Dabur India Ltd., a maker of products ranging from shampoos to beverages, lost 1.7 percent to 196.45 rupees after being cut to “add” from “buy” by Arnab Mitra, an analyst at IIFL Ltd., who said gains may be limited in the next 12 months.
Overseas funds bought a net 815 million rupees ($17.4 million) of Indian equities on July 27, raising total investments in stocks this year to 426 billion rupees, according to the nation’s market regulator.
Inflows from overseas reached a record 834.2 billion rupees in 2009, exceeding the high set two years ago in local currency terms, as the biggest advance in 18 years lured foreign funds. They sold a record 529.9 billion rupees of shares in 2008, triggering a record annual decline.
The following were among the most active on the exchange:
Shoppers Stop Ltd. (SHOP IN) rose 2.5 percent to 625.85 rupees. India’s second-largest publicly traded retailer’s first-quarter profit surged nine times to 92.9 million rupees.
Tata Communications Ltd. (TCOM IN) sank 5 percent to 270.4 rupees. The phone company controlled by India’s Tata group reported its first-quarter loss widened to 2.81 billion rupees from 551.3 million rupees a year earlier.