Indian share markets open firm

Mon, 2 Jun 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 (up 2.1%) and Hong Kong (up 0.3%) leading the gains. However, stock markets in Malaysia (down 0.5%) and Taiwan (down 0.4%) have opened in the red. The Indian share markets have opened the day on a positive note. Barring FMCG and healthcare, the sectoral indices have opened in the green with the stocks in the capital goods and power sector leading the gains.

The Sensex today is up by around 77 points (0.3%), while the NSE-Nifty is up by about 31 points (0.4%). The midcap and smallcap stocks have also opened in the green with BSE Mid Cap and BSE Small Cap indices up by around 0.9% and 0.7% respectively. The rupee is currently trading at Rs 59.24 to the US dollar.

Engineering stocks have opened mainly in the green with Suzlon Energy Ltd and Larsen & Toubro Ltd (L&T) leading the gains. However, Jyoti Structure Ltd and BGR Energy Ltd were witnessing losses. The engineering and construction major L&T has reported results for the quarter ended March 2014. The net sales for the quarter grew 11.1% YoY. The company has reported a net profit growth of 71.2% YoY on the back of strong order inflows. The growth in the net profits was driven mainly by infrastructure and heavy engineering businesses. The management expects good times ahead with long stalled projects likely to see some activity as a stable Government takes charge at the centre. The company also benefitted partly from an exceptional gain of Rs 4.8 bn for the quarter on the divestment of a part stake in a subsidiary. The net profit for FY14 grew 27.4% YoY. In FY14, the fresh orders registered a growth of 15% YoY. The company's order book witnessed a growth of 13% YoY

Auto stocks have opened the day on a mixed note with Ashok Leyland Ltd and Maharashtra Scooters Ltd leading the gains. However, Mahindra & Mahindra (M&M) Ltd and Escorts Ltd have opened in the red. India's largest utility vehicle maker M&M Ltd has announced results for the quarter ended March 2014. The revenue growth for the quarter stood at 2.3% year on year (YoY) due to tough economic environment. The decline in automotive business volumes was cushioned by higher tractor sales. The operating profit margins for the quarter stood at 10.4% during the quarter. The adjusted net profit (M&M+ Mahindra Vehicle Manufacturers Limited) for the quarter was up marginally by 0.49% YoY. The company also incurred a one-time expenditure of compensating dealers for 5-6 weeks inventory. The burden worth Rs 1.3 bn was shared by the company along with the dealers. The bottomline during the quarter was supported by tax benefits accruing from merging the loss-making subsidiary Mahindra Trucks & Bus and a onetime profit from sale of investments. Excluding the tax benefits, the bottomline during the quarter declined by 40% YoY.