6:00 PM Mumbai – State Bank of India net surged 30% but loan loss reserves stayed at 4.9%. BHEL net plunged 69%. Cipla jumped 15%. Coal India net declined 16% but sales jumped 4%. M&M revenues slipped 9%. Max India net soared three-fold.
Stocks in Mumbai rose for the fourth day in a row after State Bank of India reported stable but elevated loan loss reserves.
Markets rallied after investors took an optimistic view of the bad loans reserve at the largest bank in India. Investors were bracing for worse news on loan losses after the recent announcements from several large and smaller banks of the worsening loan qualities.
Investors also took an optimistic view of global markets after Germany reported better than expected growth and Greece and the euro zone ministers appear to be nearing a compromise to avert a crisis that could set-off debt contagion.
Indian rupee eased 88 paisa to 62.19 against one dollar.
The Sensex Index jumped 289.83 or 1% to close at 29,094.93. The CNX Nifty increased 93.94 or 1.1% to 8,805.50.
For the week, Sensex soared 1.2% and CNX Nifty surged 1.6%.
Gainers & Losers
Bharat Heavy Electricals Limited
declined 3.1% to ₹259.55 after the power generation equipment maker reported net in the third-quarter plummeted 69.4% to ₹212.60 crore.
Revenues plunged 27.48% to ₹6,472.06 crore.
rose 0.9% to ₹668.10 after the drug maker said net in the third-quarter jumped 15.3% to ₹327.85 crore.
Net revenues advanced 6.2% to ₹2,806.12 crore.
Coal India Limited
advanced 2.4% to ₹377.50 after the largest coal miner said net in the third-quarter declined 16.2% to ₹3,262.49 crore.
Net revenues advanced 4.4% to ₹19,944.86 crore.
Mahindra & Mahindra Limited
soared 5.1% to ₹1,192 after the tractor maker reported net in the third-quarter rose 0.86% to ₹942.14 crore.
Total revenues slipped 9.42% to ₹9,667.08 crore.
Max India Limited
jumped 3.2% to ₹472.35 after the health insurance service provider reported net in the third-quarter surged 346.8% to ₹329.33 crore.
Net revenues soared 40.9% to ₹416.44 crore.
State Bank of India
surged 7.9% to ₹307.05 after the largest bank in India said net in the third-quarter soared 30.24% to ₹2,910.06 crore.
Total revenues jumped 12.07% to ₹43,783.98 crore.
Loan loss reserve increased to 4.9% in the quarter to December compared to 4.89% in the previous quarter, but lower than expectations of as high as 5.5% by some analysts.
Net non-performing assets in the bank fell 2.8% compared to 3.24% in the same period last year.
climbed 3.7% to ₹1679.05 after the Reserve Bank of India increased limit for foreign investors in the company to 49%.