IT and autos drive gains

Thu, 25 Nov 09:30 am

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Asian stocks have opened the day in the green. The markets were lifted by the improved data on consumer confidence and on unemployment from the US. Indonesia, China and Hong Kong are the main gainers. Korean markets are trading flat amidst the buildup of tension between North and South Koreas. The Indian markets have opened the day in the green. Stocks from auto and IT sectors are the main gainer.

The BSE-Sensex is trading higher by around 114 points (0.6%), while the NSE-Nifty is up by about 32 points (0.6%). Mid and small cap stocks have opened in the positive as well, with the BSE-Midcap and BSE-Smallcap indices up by 0.3% and 0.6% respectively. The rupee is trading at 45.71 to the US dollar.

Siemens Ltd has announced its full year result for the year ended September 2010. The total revenues grew by 4.1% YoY. The growth was driven by a growth in volumes across all segments. The net profits increased by 7.5% YoY during the year. The company’s short cycle product business has performed well during the year despite the fierce competition in the sector. Siemens has achieved significant headway so far with six base levels hubs in progress and another 60 in pipeline. The company wants to significantly increase its revenue with Base Level and another 60 in pipeline. The company’s order backlog stood at Rs 136 bn as on 30th September 2010. This is an increase of 32% YoY. The company has also recommended a dividend of Rs 5 per share for the year. The stock is currently witnessing selling pressure along with L&T. On the other hand, PSU major BHEL is trading in the green.

Power stocks have opened the day on a weak note. Suzlon Energy, Power Grid Corp and NTPC are the biggest losers. Power major NTPC has signed a joint venture with Asian Development Bank (ADB) and Kyuden International (Kyushu) of Japan. The joint venture will develop a renewable power project in the country. It will set up a 500 MW of power generation capacity over the next three years. NTPC will hold a 50% stake in the venture while the other two partners would be equal partners of the balance. The initial capital for the entire venture would be Rs 65 m. The joint venture will initially develop hydroelectric power projects and in the future will look at other renewable sources as well. NTPC had entered into a joint venture with four other partners in 2008 for renewable projects. However, owing to the subsequent global financial crisis, two of the partners had to quit the venture.