8:45AM New York, 6:15 PM Mumbai – Sensex in India close lower led by cement, real estate, and infrastructure stocks.

Sensex 30 on Bombay Stock Exchange fell 95.59 to close at 15,699.33 on weakness in trading in cement, technology and auto stocks. Of the 30 stocks in Sensex 23 fell and the rest advanced. The turnover on the exchange was reported at 5,605 crore rupees, a decline from 6,464 crore rupees in the previous session.

Earnings News

ONGC, government controlled oil and natural gas leader, jumped 2.4% to 937 rupees after reporting first quarter earnings growth of 11% to 4,610 crore rupees. Revenue fell to 13,688 crore rupees from 14,600 crore rupees and subsidy from the government declined 29% on the higher value of rupee. The company produced 6.88 million tons of crude oil, a decline from 6.93 million tons a year ago. The company generated a gross profit of $50.21 per barrel oil arise of nearly 10% from $45 a year ago.

Decliners

The strength in rupee dragged down the technology and business services exporters. TCS fell 2% followed by 1.3% loss in Wipro but Infosys jumped 0.7%. After the close in Mumbai the company reported that it was awarded $250 million project from Philips Electronics.

Bajaj Auto fell 3.6% to 2,360 rupees after the company scheduled a meeting settle the dispute between the holding company, minority shareholders, and creditors. The meeting is scheduled on August 18th

Real Estate stocks fell sharply a day after rallying. DLF fell 3%, Parsvnath declined 3.8%, and Unitech dropped 3.6%. Stocks in the infrastructure developers fell sharply led by Suzlon energy with a loss of 6.7%. Praj Industry fell 3.5% and L&T declined 3.2%.

Cement stocks fell after the government agency ordered an investigation into the business practices of the largest eighteen cement companies. India cement plunged 9% to 204 rupees followed by 5% decline in Ambuja Cements, 3.8% loss to 1,075 rupees in ACC, and 1% to 2, 990 decreases in Grasim.

Gainers

Indian Tobacco Corporation known as ITC jumped 8.6% to 165.30 rupees on the news that the company is planning to sell consumer products through a network of kiosks and supermarket to stem the impact of higher taxes on cigarettes. The company is scheduled to report earnings on July 27th. Target price revision by CLSA brokerage group to 185 rupees contributed the firmness in the stock.

Hindustan Unilever edged 1% higher to 203 rupees on the speculation that the company may sell its vast real estate holdings in Mumbai or develop its property in Bangalore.

Ballarpur Industries, largest paper company in India, jumped 3.6% on the news that the company is looking to restructure and may buyback up to 40% of its holding.


8:00AM New York, 8:00PM Hong Kong – Shanghai index climbs to a record and Hong Kong closed a fraction lower.

Asian markets decline following sharp declines in Europe and America in the overnight trading. Philippines led the region with a loss of 1.6% followed by 1.2% decline in Australia, 0.8% decrease in Japan, and 0.6% fall in India. Hong Kong edged 0.5% lower but Shanghai advanced 2.7%.

In Hong Kong Hang Seng Index lost 110.7 to close at 23,362.18 and CSI 300 Index in Shanghai closed up 2.3% to 4,255.46 and Shanghai Composite Index jumped 2.7% to 4,323.97.

Airlines stocks soared on the earnings news. China Southern Airlines surged 9%, Hainan airlines jumped 2.6% lifted on the news that Air China earnings surged on higher demands for its international flights. The company stock jumped 7% on earnings growth of 20-fold.

Baotou Aluminum surged 9.9% and Aluminum Corp of China jumped 9.3% on the speculation that aluminum prices will gain in the coming months.

Industrial and Commercial Bank of China, the largest bank in China, jumped 2.6% in sympathy with the broader market rise. The recent rise in the stock has lifted its market value to the largest bank in market capitalization in the world.