The Mint Report for 28 July 2010

The Mint Report for 28 July 2010

Mahindra and Mahindra’s quarterly earnings have raced past expectations. Net profit shot up 40% to Rs562 crore. And net sales went up 21% to Rs5,124 crore. Despite the good news, Mahindra also warned that inflation and rising interest rates were concerns. The company also said it hasn’t decided on whether to buy South Korean SUV manufacturer Ssangyong Motor. Mahindra and Mahindra is India’s biggest manufacturer of utility vehicles, including tractors.

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Mahindra stock climbed 0.66% on the BSE on Wednesday, closing at nearly Rs643.95.

Brokerages are downgrading shares of India’s biggest company, RIL. The brokerages lowering their estimates are India Infoline, Edelweiss Securities, Ambit Capital and

Elara Securities. They predict a fall of Rs20-39 from their initial projections of the company’s target price. The downgrade has been prompted by delays in ramping up gas output from RIL’s KG basin fields. Currently, the D6 block in the KG basin produces about 60 units of gas. RIL says it will hike production only after a review of management practices and safety records.

RIL stock fell 3.09% on the BSE on Wednesday, ending at Rs1,020.95.

Markets closed in the red on Wednesday after the RIL downgrade. The Sensex closed down 120 points to end at 17,957. And the Nifty lost 33 to finish at 5,398.