Indian share markets open weak

Wed, 31 Oct 09:30 am

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Asian stock markets have opened the day on a mixed note with stock markets in Indonesia (down 0.7%) and Taiwan (down 0.3%) leading the losses in the region. However, markets in Japan (up 1.2%), South Korea (up 0.8%) and Hong Kong (up 0.4%) are trading firm. The Indian share market indices have opened the day with marginal losses. Stocks in the realty, capital goods and banking space are leading the losses. However, consumer durables and healthcare stocks are trading firm.

The Sensex today is down marginally by around 16 points (0.1%), while the NSE-Nifty is down by around 5 points (0.1%). Mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% each. The rupee is trading at Rs 54.13 to the US dollar.

Indian pharma stocks have opened the day on a firm note with Dr Reddy's Laboratories, Glenmark Pharma and Biocon Ltd leading the gains. Indian pharma company Dr Reddy's Laboratories has announced its financial results for the quarter ended September 2012 (2QFY13). During the quarter, the company's revenue stood at Rs 28,809 m, higher by 27% on a year-on-year (YoY) basis. The growth in the topline was driven by key limited competition products of ziprasidone, tacrolimus, fondaparinux, clopidogrel, strengthening of antibiotics portfolio, apart from products from its Shreveport facility. The company reported a revenue growth of about 47% YoY in North America. Gross profit margins declined marginally by 70 basis points (0.7%) YoY to 53.1%. At the bottomline level, the company reported net profits of Rs 4,074 m, a growth of 32% YoY.

Engineering stocks have opened the day on a mixed note with Shanthi Gears and Welspun Corporation trading firm. However, Jain Irrigation, Bharat Heavy Electricals Ltd and Larsen & Toubro (L&T) are facing selling pressure. As per a leading financial daily, engineering major L&T's wholly-owned subsidiary Larsen & Toubro Infrastructure Development Projects (L&T IDPL) has signed a memorandum of understanding (MoU) with SenSen Networks, an Australian software company. As per the agreement, SenSen Networks will deliver video-based CCTV linked data analytics technology to L&T IDPL. The software provided by SenSen will recognise and capture number plates in any language, in any font, size or configuration with a high level of accuracy and pass the information directly to the billing mechanism. This will help nab toll evaders. The agreement is worth Rs 1 bn, spread over a three year period. It must be noted that currently L&T IDPL handles a portfolio of infrastructure assets worth Rs 450 bn. This comprises 19 road projects, three ports and a metro rail project.