Indian stock markets smartly resumed its upward journey in the last two trading hours. All the sectoral indices are trading in the positive with metal and capital goods stocks leading the pack of gainers.
All the large Software Stocks have been trading in the green led by HCL Technologies and Mphasis Ltd. HCL Technologies Ltd (HCL Tech) has announced results for the second quarter of FY12. The company has reported a quarter on quarter (QoQ) net sales growth of 12.8%. The operating margins for the quarter came at 18.5% (up 1.4% QoQ) on account of lower direct costs. The net profit for the quarter was up 15.3% QoQ on account of higher margins at operating profit level and lower effective tax rate (25% versus 25.8% during the previous quarter). The company has proposed an interim dividend of Rs 2 per share. For the first six months, the total interim dividend is Rs 6 per share.
Majority of the fertilizer stocks are trading negative with Nagarjuna Fertilizers trading the weakest. As per a leading financial daily, the Finance Ministry has clarified that it is not working towards decontrolling the urea sector and there is no proposal of hiking urea prices sharply by 40%. After the government partially decontrolled phosphatic and potassium fertilizer prices in 2010 through its Nutrient-Based-Subsidy (NBS) Policy, urea is the only fertilizer product that continues to be fully regulated. Reportedly, the government is apprehensive about the NBS policy on urea after farmers are complaining about the rising prices of the decontrolled phosphatic & potassium fertilizers.