India’s Sensitive Index Advances for a Third Day; ICICI Gains

April 27 (Bloomberg) -- India’s Sensitive index rose for a third day. ICICI Bank Ltd., the nation’s second-largest by assets, advanced after its rating was raised at Goldman, Sachs & Co. on improving earnings.

ICICI jumped to the highest in almost four months. Ranbaxy Laboratories Ltd., the nation’s largest drugmaker, dropped after it posted a loss for the third straight quarter as sales fell in the U.S. and it forecast a loss for the year.

The Bombay Stock Exchange’s Sensitive Index rose 0.4 percent to 11,371.85. The S&P CNX Nifty Index on the National Stock Exchange fell 0.3 percent to 3,470. The BSE 200 Index dropped less than 0.1 percent to 1,343.73. Nifty futures for April delivery declined 0.5 percent to 3,465.

ICICI surged 8.2 percent to 467.95 rupees, the highest since Jan. 7. Net income fell 35 percent to 7.44 billion rupees ($149 million) in the three months ended March 31, higher than the 7.3 billion rupee median estimate of analysts surveyed by Bloomberg News. The stock was raised to “buy” from “neutral” at Goldman Sachs, which said ICICI’s fundamentals were improving.

“The core earnings have improved even though treasury income was lower,” said Jayesh Shroff, who helps manage $5.5 billion in assets at SBI Asset Management Co. in Mumbai. “That’s encouraging.”

Swine Flu Drug

Cipla Ltd., India’s second-largest drugmaker by value, added 1.5 percent to 244 rupees. The stock rose after fourth- quarter profit climbed 41 percent to 2.53 billion rupees. The company also said it can supply 1.5 million doses of generic Tamiflu drugs to help fight an outbreak of swine flu within four to six weeks.

Jaiprakash Associates Ltd. gained 3.5 percent to 130.30 rupees. India’s biggest dam builder said profit in the quarter ended March 31 rose 83 percent to 3.85 billion rupees. That beat the 1.95 billion rupee median profit estimate in a Bloomberg News survey.

Ranbaxy fell 4.7 percent to 167.65 rupees. The net loss for the first quarter was 7.61 billion rupees compared with a profit of 1.37 billion rupees a year earlier. That’s wider than the 181 million rupee median estimate in a Bloomberg News survey after the company booked 9.19 billion rupees in losses on foreign- currency options.

The company expects to post a loss of about 8 billion rupees in 2009 on full-year sales of 70 billion rupees, according to an e-mailed statement. Ranbaxy shares were downgraded by Citigroup Inc. and Credit Suisse Group.

Overseas funds bought a net 3.12 billion rupees of Indian stocks on April 23, according to the nation’s market regulator.

The following shares were among the most active on the exchange:

Aban Offshore Ltd. (ABAN IN) dropped 8.9 percent to 442.60 rupees after it reported a loss of 930.4 million rupees in the fourth quarter, compared with a profit of 339.2 million a year earlier.

Ballarpur Industries Ltd. (BILT IN) fell 5.1 percent to 16.75 rupees. India’s biggest paper maker said profit in the three months ended March 31 dropped 76 percent to 178.9 million rupees. The company will buy back bonds worth $60 million.

Indiabulls Real Estate Ltd. (IBREL IN) declined 11 percent to 130.75 rupees. The company plans to raise as much as $600 million or its Indian rupee equivalent selling shares to institutions.

Raymond Ltd. (RW IN) fell 3.9 percent to 90.15 rupees. India’s biggest maker of woolen fabrics reported a loss of 2.39 billion rupees in the fourth quarter, compared with a profit of 269.7 million rupees a year ago.

Wockhardt Ltd. (WPL IN) slid 5.4 percent to 97.10 rupees. The drugmaker reported a loss of 202.4 million rupees in the fourth quarter ended March 31, compared with a profit of 509 million rupees a year ago.