Indian equity markets have made a comeback in green during the previous two hours of trade. The most noticeable upward movements have been witnessed in the metal and IT sectors while auto and consumer durables have faced the maximum selling pressure.
Energy stocks are trading on a mixed note with Gujrat State Petronet and Oil and Natural Gas Corporation (ONGC) leading the gains while Bharat Petroleum Corporation Limited (BPCL) and Jindal Drill are leading the losses. Indian Oil Company (IOC) has announced its results for the quarter ended December 2012. The company has reported a 12% YoY growth in net sales and a 33.9% YoY growth in net profit. The growth in net profit was thanks to compensation of Rs 134,750 m received from the government and Rs 81,420 m received from upstream companies to make good the under-recoveries on selling fuels below cost. However, for the nine-month period the company recorded a loss of Rs 95,080 m for the current financial year compared to a loss of Rs 87,160 m for the same period last year because of under-recoveries. The company has requested the Government to compensate for the unmet under-recovery of Rs 132,270 m for the last nine months period, so that IOC can post profits for full year FY13. IOC's share is trading up by 1%.
IT stocks are trading on a mixed note with HCL Infosystems and TCS leading the gains while CMC and Wipro are leading the losses. India's third largest software provider, Wipro's shares will be removed from NSE- Nifty index. Wipro will be replaced by state owned minerals company, NMDC. The change will come in to force from April1, 2013. Wipro's shares have thus faced selling pressures and are likely to continue to face selling pressures in the near term due to portfolio realignment of index-based funds. NSE has stated that the demerger of non IT businesses from IT businesses is the reason for Wipro's exclusion from the Nifty index. The demerger process has been approved by the shareholders of Wipro on 28th December, 2012 and is expected to be completed within the next 4-5 months.