Indian Markets Extend Losses

Thu, 29 Oct 01:30 pm

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After opening the day marginally lower, the <Indian stock markets extended their losses in the post-noon trading session. Sectoral indices are trading mixed with banking, capital goods and FMCG sectors bearing the maximum burnt. On the other hand, consumer durables stocks are witnessing buying interest.

BSE-Sensex is down 151 points (0.6%) and NSE-Nifty is trading 46 points down (0.6%). S&P BSE Midcap and S&P BSE Smallcap index are trading marginally lower, both down by 0.1%. Gold prices, per 10 grams, are trading at Rs 26,780 levels. Silver price, per kilogram, is trading at Rs 37,124 levels. Crude oil is trading at Rs 2,990 per barrel. The rupee is trading at 65.14 to the US$.

Stocks in the cement space are trading on a mixed note with India Cements and Mangalam Cement witnessing maximum buying interest. Ambuja Cements has reported its results for third quarter ended September 30, 2015.

The company's total income decreased by 4.2% YoY to Rs 21.1 billion for the quarter under review. Its cement sales grew 3.2% YoY to 4.82 million tonnes (MT) in July-September 2015. On decline in net sales, the company stated that while the sales volume grew 3.2%, lower realization of 6.9% led to income declining by 4.3% in the third quarter.

The company posted 36% fall in its net profit at Rs 1.5 billion for the quarter on a YoY (year-on-year) basis. This was on account of lower operating EBITDA and due to an additional depreciation charge of Rs 280 million on implementation of Schedule II of the Companies Act, 2013. Total expenses were marginally higher at Rs 19.5 billion in the reported quarter.

On a separate note, Ambuja Cement confirmed that the scheme of amalgamation of Holcim India Pvt Ltd with it has been approved by the High Courts of Delhi and Gujarat. The scheme will allow Ambuja Cements to control a 50.1% stake in cement maker ACC Ltd.

Ambuja Cement is a part of global conglomerate Holcim. The company has five integrated cement manufacturing plants and eight cement grinding units across the country. Presently its stock is trading down by 0.5%.

Auto ancillaries stocks are also trading mixed with Amara Raja Batteries and Exide Industries leading the losses. Lead-acid battery major Exide Industries has reported its results for second quarter ended September 30, 2015.

The company posted a 24% rise in its net profit after tax at Rs 1.56 billion during the quarter on a YoY basis. This was primarily due to the rise in margins led by the decline in raw material costs. Raw material costs stood almost 24% lower on the back of steady decline in lead prices over the last six months.

However, the company's total income decreased marginally by 1.3% to Rs 17.5 billion for the quarter under review on a YoY basis.

The company has also announced an interim dividend of Rs 1.60 per equity share for the FY 2015-16.

EIL manufactures the widest range of storage batteries in the world from 2.5 Ah to 20,400 Ah capacities, covering the broadest spectrum of applications. EIL is India's largest producer of automotive and industrial batteries, with seven manufacturing plants located across the country.

Stock of Exide Industries is trading down by nearly 2%.