Indian share markets open firm

Fri, 24 May 09:30 am

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The major Asian stock markets have opened the day on a mixed note with Singapore (down 1.8%) and Malaysia (down 0.6%) leading the losses. However, the stock markets in Indonesia (up 0.9%) and Japan (up 2.7%) were leading the pack of gainers. The Indian share market indices have opened the day on a firm note. Barring software and healthcare, all sectoral indices have opened in the green with stocks in the metal and realty space leading the gains.

The Sensex today is up by around 72 points (0.4%), while the NSE-Nifty is up by around 23 points (0.4%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% and 0.3% respectively. The rupee is trading at Rs 55.57 to the US dollar.

Energy stocks have opened the day on a mixed note with Gujarat Gas and Mangalore Refineries and Petrochemicals Ltd (MRPL) leading the gains. However, Jindal Drill Ltd and Indraprastha Gas Ltd (IGL) have opened in the red. The gas distribution company IGL has announced its results for the fourth quarter of the financial year 2013 (4QFY13). During the quarter, the company's net profits grew by 4.4% year on year (YoY) while revenues were up by 22% YoY. The gas sales volumes for the quarter registered a growth of 5% YoY. For full year, the company has reported a 33% YoY growth in the revenues. The total sales volumes for the year were up by 10% YoY. The net profits for the year grew by 16% YoY. The Board has recommended a dividend of 55% for FY13 for consideration of the members in annual general meeting.

Steel stocks have opened the day mainly in the green with Tata Steel and Adhunik Metaliks leading the gains. As per a leading financial daily, Indian steel major Tata Steel has said that is not expecting to take any further charges in Europe. Moreover, it has not put up any of the European assets for sale. It is worth noting that in the quarter ended March 2013, the company reported write down of goodwill and assets to the tune of US$ 1.6 bn (Rs 83.6 bn), primarily on its European operations. This was on account of the extremely depressed market conditions in the region. Of the total 27 million tonnes annual steel capacity, about two-thirds of Tata Steel's capacity is in Europe. The demand in this region has fallen by nearly a third since 2007. The sluggish demand environment in Europe is expected to persist in the short to medium term. As per the company's Chief Financial Officer, Mr Kaushik Chatterjee, the company has secured a loan of Rs 220 bn for its much delayed 6 million tonne steel plant in Odisha. The company has also said that it will not proceed with its planned US$ 5 bn steel plant in Vietnam.