Asian stock markets have opened the day on a weak note as leading ratings agency Moody's, downgraded the debt ratings of six European countries including Italy, Spain and Portugal. Stock markets in China (down 0.6%), Taiwan (down 0.4%) and Korea (down 0.4%) are leading the losses in the region. The Indian stock markets have opened the day on a flat note. Stocks in the auto and consumer durables sectors are trading in the green. However, healthcare and technology stocks are witnessing selling pressure.
The BSE-Sensex is up by around 15 points (0.1%), while the NSE-Nifty is up by around 3 points (0.1%). Mid cap and small cap stocks are trading in the positive zone, with the BSE Mid cap and the BSE Small cap indices up by about 0.6% and 0.4%% respectively. The rupee is trading at Rs 49.35 to the US dollar.
Power stocks have opened the day on a lackluster note. On one hand GVK Power and Torrent Power are witnessing some gains. On the other hand, Suzlon Energy and Power Grid Corporation are trading in the red. National Thermal Power Corporation (NTPC) has declared its third quarter results for the financial year 2011-2012 (3QFY12). The company has reported a 14% YoY growth in sales during the period. This was largely driven by the growth in electricity tariffs as growth in volumes was marginal. However, operating profits declined by 20.5% YoY on account of higher fuel costs (as a percentage of sales). As a result, operating margins declined to 18.6% during the quarter as compared to 26.7% during the same period last year. Lower operating margins combined with higher depreciation and interest charges, led to a decline in net profits. However, lower tax outflow mitigated the decline to some extent. As a result, net profits declined by 10.2% YoY during the quarter. For the nine months ended December 2011 (9MFY12), revenues increased by 14% YoY while net profits declined by 17.5% YoY.
Finance stocks have opened the day on a weak note with India Infoline, Srei Infra Finance and Shriram Transport Finance leading the losses. IDFC Ltd has declared its 3QFY12 results as well. The institution reported a 26% YoY growth in income from operations during the quarter. For the nine months ended December 2011 (9MFY12), income from operations grew by 30% YoY driven by the 25% YoY growth in advances. Net interest margins for 9MFY12 improved marginally to 4.3% from 4.2% seen during the same period last year. Other income declined sharply by 82% YoY during the quarter. For 9MFY12, other income declined by 30% YoY. Higher net interest income as well as lower operating expenses led the net profits to increase by 18.6% YoY during the quarter. For 9MFY12, net income grew by 22.5% YoY. IDFC's capital adequacy ratio stood at 21.9% as at the end of December 2011.