Indian share markets open weak

Mon, 28 Apr 09:30 am

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The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (down 1.2%) and Indonesia(down 0.7%) leading the losses. However, the stock markets in Taiwan (up 0.3%) and Korea (up 0.2%) have opened on a positive note. The Indian share markets have opened the day on a weak note. The sectoral indices have opened mixed with stocks in the banking and auto sector leading the losses. However, the stocks in pharma and consumer durables space were leading the gains.

The Sensex today is down by around 16 points (0.1%), while the NSE-Nifty is down by about 11 points (0.2%). The midcap and smallcap stocks have opened in the green with BSE Mid Cap and BSE Small Cap indices up by around 0.3% each. The rupee is currently trading at Rs 60.71 to the US dollar.

Private Banking stocks have opened the day on a mixed note with Kotak Mahindra Bank and Karur Vysya Bank leading the losses. However, Karnataka Bank and City Union Bank were witnessing gains. Axis Bank has reported results for the quarter ending March 2014. The bank has reported net interest margin (NIMs) at 3.89% in the quarter, supported by growth in low-cost current account and savings account (Casa) deposits. The growth in net interest income stood at 19%, same as in the December quarter. The bank was able to maintain its Casa ratio. The asset quality improved slightly in the quarter. The gross bad debt came marginally lower at 1.22%. The improvement was on account of higher recoveries and upgrades. The increase in stressed assets remained at the same level as the December quarter. As per the management, the quality environment in FY15 will be same as 2013-14 and stressed assets in the current fiscal year are expected at Rs 65 bn, slightly higher than FY14. The non interest income for the quarter grew over 10% versus 2% growth in the December quarter. This was mainly due to strong contribution of fees from retail and corporate banking. The loan growth was maintained at 17% and deposit growth was also higher at 11% as compared to the previous quarter. For the full year, the bank's net interest income (NII) rose 24 % YoY. The net profits for the full year were up 20% YoY.

Auto stocks have opened on a mixed note with Tata Motors Ltd, Tube Investments Ltd leading the losses. However, Maharashtra Scooters Ltd and Escorts Ltd were witnessing gains. Maruti Suzuki Ltd has announced earnings for the quarter ending March 2014. The sales volume for the quarter was down by 5% YoY due to poor buyer sentiments and rising fuel prices. The net sales revenue for the quarter declined by 9% YoY. The net profits for the quarter fell 35% YoY due to weak sales and higher marketing expenses including discounts. The profits for the quarter were also adversely impacted due to provision of nearly Rs 1.4 bn for dealers to offset the additional cost on stocks after the reduction in excise duty. For full year, the consolidated revenue registered a flattish growth while consolidated net profit was up by 16% YoY. For full year, the bottomline was boosted by the company's cost reduction and localization initiatives, along with favorable foreign exchange. The sales volume for FY14 stood at 11.6 lakh units in 2013-14, down 1.4% YoY. The company's board recommended a dividend of 240% at Rs 12 per share of face value Rs 5 each for FY14.