Most Asian stock markets have opened the day on a firm note with stock markets in Japan (up 2.1%) and Hong Kong (up 1.6%) leading the gains. The Indian stock markets have also opened the day on a firm note. Stocks in the auto, capital goods and realty space are leading the gains.
The BSE-Sensex is trading higher by 204 points (1.1%), while the NSE-Nifty is up by around 60 points (1.1%). Mid cap and small cap stocks are also trading firm with the BSE Mid cap and BSE Small cap index up by 1% and 0.7% respectively. The rupee is trading at 49.29 to the US dollar.
Finance stocks have opened the day on a firm note with LIC Housing and Reliance Capital leading the gains. Shriram Transport Finance (STFC) has declared its third quarter results for the financial year 2011-2012 (3QFY12). The institution grew its income from operations at 6.3% YoY. This was driven by the robust growth of 16% YoY in assets under management. Other income and expenses increased by 7.4% YoY and 6.1% YoY respectively during the quarter. However, the 22.7% YoY growth in provisions and contingencies led the net profits to increase only by 0.4% YoY. For the nine months ended December 2011 (9MFY12), income from operations and net profits increased by 9.8% YoY and 6.8% YoY respectively. Net interest margins (NIMs) declined marginally to 7.7% for 9MFY12 as compared to 7.9% seen during the same period last year. Gross NPAs (Non Performing Assets) for the institution increased to 2.79% while net NPA ratio declined to 0.4% from 0.47% in 9MFY11.
Oil & Gas stocks have opened the day on a firm note with Indian Oil Corporation (IOC) and Petronet LNG leading the gains. As per a leading financial daily, gas output from Mukesh Ambani-led Reliance Industries' (RIL) D6 block is expected to drop by 10% to 34 million standard cubic metres a day (mmscmd) by April 2012. At present, the D6 block produces about 37 mmscmd of gas. Of the total, about 30 mmscmd is produced from D1 and D3 gas fields. It must be noted that output from these gas fields has been declining for quite some months and is expected to decline from 30 mmscmd to 27 mmscmd. The other 7 mmscmd is produced from the MA oilfield that also produces natural gas. The output from this field is expected to remain steady at 7 mmscmd. While RIL has attributed the decline to geological complexity, the oil ministry has put the blame on the company arguing that it drilled fewer wells than what was planned.