Indian share markets open in red

Thu, 7 Feb 09:30 am

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The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (down 1.0%) and China (down 1.3%) leading the losses. However, markets in Taiwan (up 0.3%) and Malaysia (up 0.2%) have opened in the green. The Indian share market indices have opened the day on a weak note. Barring software, all sectoral indices have opened in the red with stocks in the metal and capital goods leading the losses.

The Sensex today is down by around 45 points (0.2%), while the NSE-Nifty is down by around 12 points (0.2%). Mid and small cap stocks have however opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% each. The rupee is trading at Rs 53.12 to the US dollar.

Software stocks have opened the day mainly in the green with Mahindra Satyam and NIIT Ltd leading the gains. Tech Mahindra Ltd, the country's sixth largest software exporter has announced its results for the third quarter of financial year 2013 (3QFY13). The consolidated net sales for the quarter grew by 9.8% on a quarter on quarter basis (QoQ). In terms of US dollar revenues, growth in sales was 10% QoQ. The operating profit margins for the quarter improved slightly by 0.3% QoQ to 21%. That was because of a relatively modest growth in the operating expenses. On an absolute basis, the operating profits grew by 11.4% QoQ. The net profits for the quarter declined by 6.9% QoQ. This was because of lower contribution to the share of profits from its associate Mahindra Satyam. The contribution from the latter declined by a 71% QoQ. The total number of active clients increased from 126 at the end of 2QFY13 to 140 at the end of 3QFY13.

Pharma stocks have opened the day on a mixed note with J.B Chemicals and Zandu Realty leading the losses. However, Aurobindo Pharma and Ipca Labs have opened in the green. The leading pharma company Cipla has announced its results for the third quarter of financial year 2013 (3QFY13). The company has reported an 18% year on year (YoY) growth in the revenues for the quarter. The growth in the topline was mainly driven by growth in international business and technology income. Total exports for the quarter grew by 28% YoY, fuelled by the sales of anti-depressants, anti-malarials, anti-retroviral and anti-asthma medicines. In the domestic markets, the growth was modest (10% YoY) as a delayed winter affected the demand of antibiotics. The operating profits for the quarter grew by 26% YoY. The net income for the quarter also registered a growth of 25% YoY. This was despite a significant increase in the tax expenses on an annual basis.