Asian stock markets have opened the day on a weak note. Stock markets in Japan (down 0.7%), China (down 0.5%) and Hong Kong (down 0.2%) are in the red. The Indian stock markets have opened the day on a weak note as well. Stocks in the technology and consumer durables space are leading the losses. However banking stocks are trading in the green.
The BSE-Sensex is trading lower by 40 points (0.3%) and the NSE-Nifty is lower by around 9 points (0.2%). Mid cap and small cap stocks have opened on a firm note, with the BSE Mid cap and BSE Small cap indices up by 0.1% each. The rupee is trading at 51.8 to the US dollar.
Banking stocks have opened the day on a firm note with Dhanlaxmi Bank, Karnataka Bank, ING Vysya Bank and Development Credit Bank leading the pack of gainers. Leading public sector lender State Bank Of India (SBI) has announced a reduction in processing fees for home loans by 50%. The move is aimed at capturing a larger share of the home loan market. As per a senior bank official, the bank will charge fees only to the extent of covering its cost. It will not earn a profit on the same. For home loans above Rs 75 lakh, SBI has slashed processing fee to Rs 10,000 from Rs 20,000. For loans in the range of Rs 30 laks to Rs 75 lakh, the fees have been reduced to Rs 6,500 from Rs 10,000. However, the processing fee for loan below Rs 30 lakh continues to be 0.25% of the loan amount.
IT stocks have opened the day on a weak note with Infosys Ltd, Tata Consultancy Services (TCS) and Wipro leading the losses. Industry major, Infosys Ltd has recently released its third quarter results for the financial year 2011-2012 (3QFY12). The company has reported a 14.8% quarter on quarter (QoQ) growth in its total revenues. The operating margins improved to 31.2% as compared to 28.2% seen during the previous quarter (2QFY12). This was on account of cost savings across all of the expense heads (all as a percentage of sales). Higher operating margins as well as higher other income led to a 24.4% QoQ growth in the net sales of the company. However, the company's management has lowered its full year guidance due to the uncertainty in the global markets. Further they have hinted on a slowdown in the IT industry on account of the troubles in the Euro zone as well as the slower growth in the developed markets. The stock has opened the day deep in the red.