Indian stock markets open weak

Thu, 3 Nov 09:30 am

   Previous Close   

   Pre-Open   

   11:30 am   

   01:30 pm   

   Closing   

Most Asian stock markets have opened the day on a weak note with stock markets in Hong Kong (down 1.7%), Indonesia (down 1.3%) and Taiwan (down 1.2%) leading the losses. However, markets in China (up 0.9%) are trading firm. The Indian stock market have also opened the day on a weak note. Stocks in the FMCG and oil and gas space are leading the losses. However, power and realty stocks are trading firm.

The BSE-Sensex is trading lower by 29 points (0.2%), while the NSE-Nifty is down by around 9 points (0.2%). However, BSE Midcap and BSE Small cap stocks are trading in the green, with the BSE Mid Cap and BSE Small Cap indices up by 0.4% and 0.3% respectively. The rupee is trading at 49.38 to the US dollar.

Engineering stocks have opened the day on a mixed note with Bharat Heavy Electrical Ltd (BHEL) and Praj Industries trading in the green. However, Larsen & Toubro (L&T) and Siemens are facing selling pressure. Engineering major L&T's construction arm has received new contracts in the buildings and factories segment. The total worth of these new contracts is about Rs 16.3 bn. As per an official statement made by the company, a major design and build order worth Rs 9 bn was received during the end of the second quarter of the current financial year (2QFY12) for the construction of a major IT campus facility. During the third quarter, L&T bagged new orders worth about Rs 7.3 bn for the construction of a commercial building, university, residential towers and an automobile factory from various clients. These contracts have further boosted L&T's order book. The company has already bagged major design and build contracts for airports, IT parks, commercial and residential projects in India and abroad.

PSU Bank stocks have opened the day on a firm note with Allahabad Bank and Punjab National Bank (PNB) leading the gains. However, UCO Bank and IDBI Bank are trading in the red. Oriental Bank of Commerce (OBC) has declared its results for the second quarter of financial year 2011-12 (2QFY12). The bank has reported 27% YoY growth in interest income and 58% YoY fall in net profits for the quarter. Interest income growth was supported by 21% YoY growth in advances. Net interest margins (NIM) witnessed a decline from 3.3% to 2.8% in 1HFY12. Net profits declined by 58% YoY in 2QFY12, on account of increased provisions on non-performing assets (NPA). Net non-performing assets (NPA) increased sharply to 1.9% of advances in 2QFY12 from 0.7% in 2QFY11 on account of migration of sub ten lakh accounts onto the core banking system. The capital adequacy ratio stood at 12.6% (as per Basel II) at the end of 2QFY12.