Indian share markets open weak

Thu, 24 Jan 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in Malaysia (up 0.4%) and Japan (up 0.4%) trading firm. However, markets in Hong Kong (down 0.2%), South Korea (down 0.4%) and Taiwan (down 0.4%) are facing selling pressure. The Indian share market indices have opened the day on a weak note. Stocks in the auto and realty space are leading the losses. However, FMCG and software stocks are trading in the green.

The Sensex today is down by around 32 points (0.2%), while the NSE-Nifty is down by around 8 points (0.1%). The mid cap and small cap stocks have opened in the red with the BSE Mid Cap and BSE Small Cap indices down by 0.7% and 0.2% respectively. The rupee is trading at Rs 53.71 to the US dollar.

Energy stocks have opened the day on a mixed note with Oil India Ltd (OIL) and Oil & Natural Gas Corporation Ltd (ONGC) leading the pack of gainers. However, Gujarat State Petronet Ltd (GSPL) and Chennai Petroleum Corporation Ltd (CPCL) have opened on a weak note. As per a leading financial daily, Reliance Industries Ltd (RIL) has closed its eighth well (out of a total of 22 wells) on main gas fields in KG - D6 block. With the shutdown of the well, the gas output has hit an all time low of 20.88 million standard cubic meters per day (mscmd). As per a status report prepared by the petroleum ministry's technical arm, the Directorate General of Hydrocarbons (DGH), RIL shut the well B6 on the main producing fields of Dhiburbhai-1 and 3 (D1&D3) in the KG-D6 block on 9 January due to water loading.RIL has drilled 22 wells on D1&D3 fields but has put only 18 on production so far. The petroleum ministry has withheld approvals for expenditure on repair work as RIL is reluctant to give the Comptroller and Auditor General of India (CAG) access of its books to conduct a second round of audit. The audit has since begun but the approvals haven't come yet. As per DGH report, the company has projected an output of 22 mscmd in January 2013.

Pharma stocks have opened the day on a mixed note with Aurobindo Pharma Ltd and Dr Reddy's Ltd (DRL) trading weak. However, Sun Pharmaceuticals Ltd and Divis Laboratories Ltd have opened in the green. Novartis India has announced its results for the third quarter of the fiscal year 2013 (3QFY13). The firm has reported a 5% year on year (YoY) increase in the net sales for the quarter. The company's core business of pharmaceuticals registered revenue growth of 5.5% YoY. The growth in the generic business and animal health business came at 10.6% YoY and 14.5% YoY respectively for the quarter. The company's total expenses for the quarter increased by 14.0% YoY. The operating margins for the quarter declined by 7% YoY. The net profits for the quarter were down by 24.3% YoY.