Markets continue in red

Fri, 29 Apr 01:30 pm

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The benchmark indices in the Indian stock market continued in the red in the last two hours of trade. Stocks from Banking, Capital goods and Realty are trading weak, while those from FMCG and Healthcare are trading firm.

The BSE-Sensex is down by 77 points while NSE-Nifty is trading 18 points below yesterday's closing. BSE Midcap and BSE Small cap indices are also down by 0.3% and 0.7% respectively. The rupee is trading at 44.32 to the US dollar.

Energy stocks are trading mixed with Petronet LNG and Cairn India leading the pack of gainers. The stocks of ONGC and Castrol are trading in the red. Gujarat Gas has announced results for the quarter ending March 11. The company registered a 30% YoY growth in net sales during the quarter. The growth came on the back of more than 8,700 (vs. 5,700 last year) vehicles that were converted to CNG during the quarter. However, the Industrial sales witnessed a sequential decline. The company currently distributes 3.4 mmscmd (versus 3.2 mmscmd in 1QCY10) of natural gas and sold gas volumes of 303 mmscm in the quarter, down 1.9% QoQ. The operating margins contracted by 4.5% YoY mainly due to raw material costs (mainly the cost of gas) that increased by 4.1% (as a percentage of sales) on a YoY basis. Gas cost was higher due to increase in RLNG prices. The net profits for the quarter were up by 17% YoY on account of 156% increase in 'Other income', partially offset by increase in tax, depreciation and interest costs. However, the net margins contracted by 1.5% YoY.

Banking stocks are trading in the red with UCO bank, Oriental Bank and Union Bank leading the pack of losers. Bank of Baroda has declared its FY11 (financial year 2011) results. The bank has reported 31% YoY and 39% YoY growth in interest income and net profits respectively during the year. The net interest income is up by 48% YoY in FY11, on the back of 31% YoY growth in advances. Other income is up by a marginal 3% YoY in FY11 but remains flat for the nine month period due to fall in treasury income. Despite substantially low yields on overseas assets, global NIMs have moved up from 2.7% in FY10 to 3.1% in FY11. The net NPAs were up marginally from 0.34% in FY10 to 0.35% in FY11. The bank's net profits registered a growth of 39% YoY in FY11, adversely affected by provisions on advances . The Capital adequacy ratio for the bank came at 14.5% at the end of FY11. The board has recommended a dividend of Rs 16.5 per equity share, implying a dividend yield of 2%. The stock of Bank of Baroda is trading in the red.