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Capital goods keep markets buoyant
Tue, 24 May 11:30 am

Indian stock markets have traded flat since opening as investors adopted a cautious stance while investing in heavy weights. Stocks from the capital goods and banking space are trading firm, while stocks from the realty and metals space are trading weak.

The BSE-Sensex is trading up by 68 points while NSE-Nifty is trading 18 points above the dotted line. BSE Midcap and BSE Small cap indices are both trading flat. The rupee is trading at 45.24 to the US dollar.

Media stocks are trading mixed with Saregama and Dish TV leading the gains. However, Broadcast Initiatives and Reliance MediaWorks are trading in the red. Balaji Telefilms has announced its results for the fourth quarter and full year ended March 2011. The company's standalone topline fell slightly by 0.5% YoY during 4QFY11. For the full year, the topline fell by 7%. The media company reported an operating loss of Rs 4 m for the quarter and Rs 86 m for the full year. Higher depreciation charges and staff costs along with reduction in income from investments resulted in a net loss of Rs 11 m for 4QFY11. For the full year, net loss amounted to Rs 34 m. The company's Board of Directors recommended a dividend of Rs 0.2 per share on the paid-up equity share capital of the company for the financial year ended March 2011.

Hotel stocks are trading mixed with Oriental Hotels and Taj GVK trading firm, while Hotel Leelaventure and EIH Limited are trading weak. Hotel Leelaventure released its FY11 results yesterday. The company's top line grew by 17% YoY on strong demand aided by increase in foreign arrivals and in domestic traffic. Operating profit increased by 24.8% YoY while operating margins grew by 1.8% to stand at 29.5% YoY. This performance was the result of slower than top line growth in power and fuel costs and other expenditure. While power and fuel costs increased by 1% YoY, other expenditure increased by 14% YoY. Growth in operating income could have been higher but for a sharp increase of 20% YoY in staff costs. Net profit of the company fell by 8% YoY. This was a result of a sharp increase in interest costs. Interest costs increased by 136% YoY during the quarter.

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