Indian share markets open weak

Tue, 29 Oct 09:30 am

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Asian stock markets have opened the day on a weak note with China (down 1.1%) and Indonesia (down 0.8%) leading the losses. The Indian share market indices have opened the day on a negative note. Stocks in the realty and capital goods space are leading the losses. However, consumer durables stocks are trading firm.

The Sensex today is down by around 21 points (0.1%), while the NSE-Nifty is down by around 4 points (0.1%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 0.3% and 0.1% respectively. The rupee is currently trading at Rs 61.52 to the US dollar.

Auto stocks have opened the day on a mixed note with Maruti Suzuki and Bajaj Auto leading the gains. However, Ashok Leyland and Tube Investments are trading weak. India's leading passenger vehicle maker Maruti Suzuki has announced its results for the second quarter of the financial year 2013-14 (2QFY14). During the quarter, net sales stood at Rs 104,680.6 m, higher by 26% on a year-on-year (YoY) basis. The growth in the topline was driven by robust volumes. Total vehicles sold stood at 275,586 units during the quarter, higher by 19.6% YoY. While sales of domestic vehicles (87.7% of total vehicles sold) increased by 15.1% YoY to 241,562 units, export sales increased by 66.6% YoY to 34,024 (12.3% of total vehicles sold) units. Operating profits stood at Rs 13,214.3 m, reporting a sharp rise of 159.8% YoY. Operating profit margins improved from 5.4% in 2QFY13 to 11.3% in 2QFY14. Other income dipped by 35.4% YoY to Rs 1,010.2 m during the quarter. Depreciation and interest expenses increased by 43.8% YoY and 14.2% YoY, respectively. At the bottomline level, net profits increased by 194.7% YoY to Rs 6,702.3 m. Net profit margins improved from 2.4% in 2QFY13 to 5.7% in 2QFY14. It must be noted that the profits in the corresponding quarter of the previous financial year were significantly subdued on account of a month-long industrial lockout at the company's Manesar plant.

Power stocks have also opened the day on a mixed note with Power Trading Corporation (PTC), National Thermal Power Corporation (NTPC) and Tata Power leading the gains. However, Indiabulls Power, GVK Power & Infra and Torrent Power are leading the losses. As per a leading financial daily, Tata Power is expanding its renewable energy portfolio. As a part of this strategy, the company is developing wind power projects in India with a total generation capacity of over 160 megawatt (MW). Currently, the company has a total installed wind energy generation capacity of 398 MW with projects across Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka. Tata Power's electricity generation from wind projects increased by 43% YoY to 813 million units during the financial year ended March 2013 (FY13). The strong growth in electricity generation was on account of Agaswadi wind farms which had an increased generation of 85 million units and Poolavadi with 140 million units. Apart from wind energy, the company also has a footprint in solar power generation and is also implementing hydro power projects.

The company has a total installed power generation capacity of 8,500 MW and aims to develop 20-25% of the total generation capacity from clean energy sources.