Indian stock markets indices lost further ground over the last two hours of trade on back of heavy selling activity witnessed across industry heavyweights. All the sectoral indices are trading in the red led by capital goods and power stocks.
Energy stocks are trading mixed with Essar Oil and Mangalore Refinery and Petrochemicals (MRPL) leading the gainers and Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd. (BPCL) trading the weakest. Petronet LNG has announced its results for the third quarter of fiscal year 2012 (3QFY12). The company reported a topline growth of 74.5% on a year on year basis (YoY). The increase in revenues was driven by higher regasification volumes (up 21% YoY) and better margins. The operating profits for the quarter registered a growth of 45.6% YoY with margins at 7.9% (as compared to 9.5% in the 3QFY11). The margins improved on account of efficiency gains (company's Dahej terminal operated at 115% of the nameplate capacity during the quarter). The net profits for the quarter were up 72.9% with net profit margins at 4.7%, same as in the corresponding quarter last year. Besides, in a recent board meeting, the company has decided to set up its third terminal at Gangavaram port in Andhra Pradesh with an expected capacity of 5 million tonnes and at an estimated cost of Rs 45 bn. As per the management, the work on Kochi terminal is done to the extent of 94%-95% and operations are expected to commence by the month of October this year.
Pharma stocks are trading mixed with Sun Pharma and Dishman Pharma leading the gainers and Divi's Laboratories and Aurobindo Pharma trading the weakest. According to a leading financial daily, Ranbaxy Laboratories is up for a tough time ahead on account of regulatory issues. The company has been accused of making unsafe drugs for its crucial US market. As such, the company has to give up six months marketing exclusivity rights for three generic drugs where it has the first-to-file (FTF) status. The decree impacts its FTF cash flows from three drugs, with five more at risk. Besides, the company needs to hire an expert to review the plants that were found non compliant along with other procedures like withdrawal of applications based on false data which will mean additional costs and time that can delay the approval process.