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Markets climb 1%; L&T rallies

Markets climb 1%; L&T rallies
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First Published: Fri, May 20 2011. 12 15 PM IST
Updated: Fri, May 20 2011. 12 15 PM IST
Bangalore: Markets climbed more than 1% on Friday, led by engineering and construction conglomerate Larsen & Toubro and supported by mostly firmer regional markets.
The rise, after modest gains on Thursday, will not be enough to wipe out losses of 2.4% in the first three days this week caused by worries about rising interest rates.
L&T, which had posted a 17.2% rise in quarterly profit on Thursday and forecast revenue to rise a quarter this year, was boosted by upgrades in share price targets by at least two brokerages.
At 11:43am, the 30-share BSE index was up 1.05% at 18,331.05 points, with all but one of its components advancing.
“Larsen is playing a decent role in pulling up the index. Post SBI results, people were sceptical if Larsen would deliver. The results were a pleasant surprise,” said Ambareesh Baliga, chief operating officer at Way2Wealth Securities.
RBS raised its rating on Larsen to buy from hold and raised its price target, calling it the “best play on the road-based longer-term Indian capex story”.
L&T was trading up 3.7% at Rs 1,654, after gaining 5.8% on Thursday.
Goldman Sachs raised its price target for L&T to Rs 2,006 from 1,987, while Bank of America-Merrill Lynch cut its target to Rs 2,070 from 2,280 saying the company was facing a delay in orders.
State Bank of India (SBI), the country’s largest lender, nudged up 0.6% to 2,337.05 rupees, after sliding nearly 11% since reporting an unexpected slump in quarter profit on Tuesday.
Leading cigarette maker ITC was trading 0.9% higher ahead of March-quarter results.
Analysts, on average, expect the company to post a 19% rise in net profit to 12.25 billion rupees, on net sales of Rs 5,518 crore according to Thomson Reuters I/B/E/S.
Energy major Reliance Industries , which has the heaviest weight on the benchmark index, dipped 0.1% to Rs 914.50. The stock has fallen over 13% this year, mainly on concerns over decline in gas output from its blocks off India’s east coast.
The 50-share NSE index was up 0.88% at 5,476.15 points. In the broader market 951 gainers led 369 losers on volume of over 193 million shares.
Elsewhere, the MSCI’s measure of Asian markets other than Japan was up 0.12% by 11:53am, while Japan’s Nikkei was down 0.1%.
STOCKS
Gammon Infrastructure Projects Ltd rose as much as 6.1% to 18.90 rupees after its board approved a rights issue of up to Rs 200 crore. It also deferred considering issue of preference shares to Gammon India Ltd .
Drugmaker Wockhardt Ltd was trading 6.3% higher at Rs 359.25 after it reported a net profit of Rs 162 crore for the March quarter, reversing a loss a year earlier.
Crompton Greaves Ltd was up 2.8% at Rs 244.95 after the capital goods maker said it bought Sweden-based Emotron Group for an enterprise value of €57.8 million.
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First Published: Fri, May 20 2011. 12 15 PM IST
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