Despite the uncertainty surrounding the Greek debt deal, Asian stock markets have opened the day on an upbeat note. Stock markets in Taiwan (up 1.5%), South Korea (up 0.8%) and Japan (up 0.7%) are leading the gains in the region. The Indian stock markets have opened the day on a positive note as well. Stocks in the realty and FMCG sectors are leading the pack of gainers. However, auto and banking stocks are witnessing selling pressure.
The BSE-Sensex is up by around 25 points (0.1%), while the NSE-Nifty is up by around 7 points (0.1%). Mid cap and small cap stocks are trading in the positive zone as well, with the BSE Mid cap and the BSE Small cap indices up by about 0.4% and 0.5%% respectively. The rupee is trading at Rs 49.22 to the US dollar.
Engineering stocks have opened the day in the positive zone with Jyoti Structures, KSB Pumps and Punj Lloyd trading in the green. Greaves Cotton, one of India's largest engine manufacturers, has declared its third quarter results for the financial year 2011-2012. On a standalone basis, the company has reported a 10.8% YoY growth in net sales. The growth was led by the 16.9% YoY growth in the company's engines division. However, its positive effect was partially offset by the 24.8% YoY decline in the sales of the company's infrastructure division. Raw material price inflation, higher other expenses and non recurring items led the operating profits to drop by 18.1% YoY during the quarter. As a result, operating margins declined to 12.6% during the quarter as compared to the 17% seen during the same period last year. Lower operating margins as well as higher depreciation expenses led net profits to decline by 23% YoY during the quarter. The company has declared a dividend of Rs 0.4 per share during the quarter.
Container Corporation of India Ltd (Concor) has declared its third quarter results for the financial year 2011-2012 (3QFY12). The company has reported a 7.7% YoY growth in net sales. This was mainly account of the increase in volumes as the company has not increased the freight rates. However, it did fully pass on the 11.8% increase in surcharge by railways to its customers. Operating profits for the quarter declined marginally by 1.1% YoY during the quarter. As a result, operating margins came in lower at 26.5% as compared to 28.9% seen during the same period last year. This was mainly on account of running a higher number of empty rakes during the quarter which led to an increase in operating costs. Net profits for the quarter increased by 5.1% YoY despite the decline at operating levels. This was due to higher other income as well as lower tax outflow during the quarter. The stock of the company has opened the day in the red.