Indian share markets open in red

Mon, 11 Feb 09:30 am

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   11:30 am   

   01:30 pm   

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Barring Japan (down 1.8%), the major Asian stock markets have opened the day in the green with stock markets in South Korea (up 1.0%) and China (up 0.6%) leading the gains. The Indian share market indices have opened the day in the red. The sectoral indices have opened on a mixed note with stocks in the metal and FMCG leading the losses. However, the stocks in the realty and software sector have opened in the green.

The Sensex today is down by around 30 points (0.3%), while the NSE-Nifty is down by around 2 points. The mid cap and small cap stocks have opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around by around 0.1% and 0.2% respectively. The rupee is trading at Rs 53.68 to the US dollar.

Auto ancilliaries stocks have opened the day on a mixed note with Bharat Forge Ltd and SKF India leading the losses. However, Rico Auto and Carborundum Universal Ltd have opened in the green. Bharat Forge Ltd has announced its results for the third quarter of the financial year 2013 (3QFY13). The company has reported a 28.5% year on year (YoY) decline in the revenues. As per the management, the demand drop along with inventory de-stocking at OEM level led to decrease in the capacity utilization during the quarter. The management undertook manufacturing cuts to reduce inventories and match its production levels with the new demand environment. The non- automotive business, which has been a key growth driver over the past 2 -3 years was also adversely affected by slowdown in global demand for infrastructure related products and solutions. The company reported a 54% YoY decline in the net profits during the quarter.

Energy stocks have opened the day on a mixed note with Gujarat State Petronet Ltd (GSPL) and Bharat Petroleum Corporation Ltd (BPCL) leading the losses. However, Indraprastha Gas Ltd (IGL) and Jindal Drill Ltd have opened in the green. IGL has announced its results for the third quarter of the financial year 2013 (3QFY13). The revenues for the quarter witnessed a growth of 31% on a year on year (YoY) basis. The Compressed Natural Gas (CNG) sales volumes for the quarter increased by 8% YoY while Piped Natural Gas (PNG) sales volumes were up by 17% YoY. Overall, the gas sales volumes grew by 9% YoY. As per the management, the cost of raw material has increased on a sequential basis due to increasing share of costlier imported gas. The company posted a 25 % year on year (YoY) growth in net profit for the quarter, lower than 28.5% YoY growth in 2QFY13. In s separate news, the company has hiked the PNG prices for households in the National Capital Territory (NCT) with effect from February 10, 2013.