JPMorgan's profit jumps to $2.72 bn

Domestic stock indices ended flat after a volatile session as investors and traders booked profits made in the past two sessions. Key European markets were seen choppy ahead of US jobless claims data (for the week ended Saturday) which is due later today. Both the indices ended flat with BSE's Sensex closing at 14250.25, down 2.99 points & NSE's Nifty closing at 4231.40, down 2.10 points from yesterday.

Among BSE sector indices, capital goods, metals, and bank shares remained worst hit, while auto and oil and gas shares ended firm. It is to be understood that Oil and Gas sector got lot of sops from the Union Budget (Some of them are mentioned in my mail to the Yahoo Group---SumanSpeaks).

The budget is also positive for the infrastrucutre sector and power sectors. In case of Power Sector: (i) Power reforms programme funds of Rs.20.8 billion were to be earmarked in FY10 (ii) Customs duty on windmill inputs cut to 5% from 7.5%. We have already seen a rally in my recommended Suzlon Energy Ltd. In the infrastructure sector we saw a huge rally in Atlanta Ltd and Prajay Engineers Syndicate Ltd.

Moreover, Entegra Ltd which is into Hydro-power is also expected to do well in view of the fact that the companies in this sector generate maximum power during the monsoon seaons. Entegra Ltd, will have a meeting of Equity Shareholders, for the purpose of considering and if thought fit, approving, with or without modification(s), the Scheme of Merger of SKG Power Ventures Pvt. Ltd, the Transferor Company with Entegra Ltd, the Applicant Company on or before 27th July, 2009. Entegra Ltd which was once trading around Rs.70 (Seventy) is surprisingly available at Rs.22.90, even while the company is on the verge of completing the massive Rs.25 bn, 400MW run-of the-river Shree Maheshwar Hydel Power Project in Madhya Pradesh and will start production of power within a few months on the commercial scale.

Besides this my ealier recommended Reliance Industrial Infra, Atlanta Ltd, Opto Circuits, BSEL Infra, Dish TV, XL Telecom Ltd, Vijay Shanti Builders Ltd, Northgate Technologies Ltd, etc, did well today.....

Mahindra Holidays & Resorts (India), which got listed on the NSE today at 370 rupees, held on to gains and ended up nearly 6% at 317.45 rupees—higher than its issue price of 300 rupees. In this section Country Club Ltd looks good........Most realty shares gave up gains made in three consecutive sessions on profit sales. Bank shares also fell in line with the broad market.

JPMorgan Chase & Co posted a higher quarterly profit on Thursday, topping Wall Street estimates, as strength in its core consumer and US mortgage crisis.

Second-quarter net income rose to $2.72 billion from $2 billion a year earlier, while net revenue jumped 41 per cent to $27.71 billion.

Profit per share fell to 28 cents from 53 cents, due in part to an increase in shares outstanding.

The bank said it set aside $9.7 billion for credit losses, up from $4.29 billion a year earlier but down from the first quarter's $10.07 billion.

JPMorgan last month repaid $25 billion taken from the Troubled Asset Relief Program and is the largest US bank to repay federal bailout money. It has said it will allow the Treasury Department to auction the attached stock warrants, rather than pay an inflated price to buy them back.

Chief Executive Jamie Dimon said in a statement that the bank felt confident that its capital, reserve levels and earnings power are solid even if the economy weakens.

Second-quarter results included per-share charges of 27 cents relating to the TARP repayment, and 10 cents to bolster a federal deposit insurance program.

Analysts on average had expected profit of 4 cents per share on revenue of $25.91 billion, according to Reuters Estimates.

JPMorgan shares closed Wednesday at $36.26 on the New York Stock Exchange. Through Wednesday, the shares had risen 15 per cent this year, compared with a 14.4 per cent decline in the KBW Bank Index.