The major Asian stock markets have opened the day on a firm note with stock markets in Hong Kong (up 1.3%) and China (up 1.4%) leading the gains. The Indian markets have also opened in the green. The global markets have received a boost from the European Central Bank's announcement on measures to stimulate the slowing economy. The ECB will buy 60 billion Euros worth of assets per month, in a program that will last through September 2016.
All sectoral indices have opened on a positive note with stocks in the auto and capital goods sector leading the gains.
The BSE-Sensex is currently trading higher by about 383 points (up 1.3%), while the NSE-Nifty is up by about 105 points (up 1.2%). The stocks in the midcap and small cap space too have opened the day on a positive note, with BSE Mid Cap index and BSE Small Cap index up by 0.3 % and 0.4% respectively. The rupee was trading at Rs 61.41 to the dollar.
Barring India Oil Corporation Ltd (IOCL) and GAIL (India) Ltd, the energy stockshave opened mainly in the green with Oil India Ltd and Bharat Petroleum Corporation Ltd leading the gains. Cairn India Ltd has reported results for the quarter ended December 2014. The company has posted a decline of 53.2% year on year (YoY) on account of falling crude prices. The company sells crude at around US$ 9 - US$ 10 lower than crude that averaged US$ 77.1 per barrel during the quarter. The revenues for the quarter declined by 29.9% YoY. The operating profit for the quarter declined by 43% YoY, with margins at 57.84% as against 71.1% in the third quarter of the last fiscal. During the quarter, the company's average crude oil price realization stood at US$68.7 per barrel, a fall of 28.8% YoY. The company also reported a decline of 2% YoY in the daily production of oil and gas during the quarter. However, the production grew sequentially by 10% YoY.
Indian Pharma stocks have opened the day mainly in the green led by Dishman Pharma Ltd and Ranbaxy Laboratories Ltd leading the gains. However, Biocon Ltd and IPCA Labs were facing selling pressure. Biocon Ltd has reported results for the quarter ended December 2014. The company has reported a 13% year on year (YoY) decline in the bottomline for the quarter. The revenues for the quarter were up 8% YoY. Further, it has announced sale of 10%-15% (from current stale of 85.54%) stake in its research services arm Syngene through offer for sale route. The timing of listing of Syngene on the Indian stock exchanges will be dependent on regulatory approvals and market conditions. As per the management, the company continues to invest in its uniquely differentiated Biosimilars portfolio, which spans both Insulins and Monoclonal Antibodies. The management is confident that the portfolio will deliver short term growth in the emerging markets and drive long term value creation across global markets.