Asian stock markets have opened the day on a firm note with stock markets in Japan (up 0.3%), South Korea (up 0.3%) and Singapore (up 0.2%) leading the gains. The Indian stock markets have also opened the day on a positive note as well. Stocks in the Information Technology and metal space are leading the gains.
The BSE-Sensex is trading higher by 121 points (0.7%), while the NSE-Nifty is up by around 34 points (0.7%). Mid cap and small cap stocks are also trading in the green with the BSE Mid cap and BSE Small cap indices up by 0.6% and 0.7% respectively. The rupee is trading at 49.77 to the US dollar.
Pharma stocks have opened the day on a mixed note with Sun Pharma and Dishman Pharma trading in the green. However, Ranbaxy Laboratories, Strides Arcolab and J B Chemicals are facing significant selling pressure. Lupin has announced its third quarter results for financial year 2011-12 (3QFY11). The company has reported a 20.4% YoY and 4.9% YoY growth in sales and net profits respectively. Sales growth of 20.4% YoY was largely driven by 30% YoY growth in the domestic formulation segments and higher realisation due to favourable rupee depreciation. The operating margins (EBITDA) increased by 0.8% to 20.5% due to lower raw material costs on account of higher realisations in the international markets. However, increase in employee cost suppressed the margin expansion to 0.8% only. Profit after tax grew at a tepid rate of 4.9% YoY largely on account of higher depreciation and higher tax rate of 22.6%.
Auto stocks have opened the day on a firm note with Tata Motors and Ashok Leyland leading the gains. Bajaj Auto has said that Renault-Nissan officials have already seen the four-wheeler named RE-60 by Bajaj. However the officials are yet to confirm if they have been interested to sell the first four-wheeler car by Bajaj. This was communicated by the Bajaj's Managing Director at the press conference for the launch of KTM Duke 200 bike. In May 2011, Renault had expressed interest in Bajaj's car project. However, it had also said that it would only be interested if the vehicle matches the quality of Renault. The project for Bajaj's four-wheeler was started back in 2007 with the motive to create an ultra low-cost four-wheeler. After this, it was planned that the car will be manufactured by Bajaj but sold under the name of Renault's brand.