Asian stock markets have opened yet another day on a firm note with stock markets in Hong Kong (up 1.6%), Japan (up 1.4%) and Taiwan (up 1.3%) leading the gains. The Indian stock markets have also opened the day on a firm note. Stocks in the FMCG, auto and power space are leading the gains. However, technology stocks are facing heavy losses.
The BSE-Sensex is up by 37 points (0.2%), while the NSE-Nifty is up by around 16 points (0.3%). Mid cap and small cap stocks are also trading in the green, with the BSE Mid cap and BSE Small cap indices up by 0.8% and 0.5% respectively. The rupee is trading at Rs 51.37 to the US dollar.
Information Technology stocks have opened the day on a gloomy note with Infosys and Tata Consultancy Services (TCS) facing severe selling pressure. Industry major, Infosys Ltd has recently released its fourth quarter as well as full year results for the financial year 2011-2012 (4QFY12 and FY12). The company has reported a 22.7% year on year (YoY) growth in its total revenues during the year. However, revenues declined by 4.8% on a quarterly basis (QoQ) during 4QFY12. Operating margins for the year declined by 0.5% YoY to 29%. This was largely on account of higher cost of sales as a percentage of total revenues. For 4QFY12, operating margins declined to 29.9% from 31.2% seen during 3QFY12. Higher other income during the year offset the negative impact of higher taxes as well as lower operating margins to some extent. As a result, net profits increased by 21.9% YoY during FY12. However, for 4QFY12, net income dropped by 2.4% QoQ. The company has declared a final dividend of Rs 22 per share. It has also declared a special dividend of Rs 10 per share.
PSU bank stocks have opened the day on a firm note with United Bank of India, Indian Bank and Central Bank leading the pack of gainers. Public sector lender Punjab National Bank (PNB) is set to start service centres called 'E-Lobby' which will have an ATM, a cash deposit kiosk, cheque deposit machine, pass book printing terminal and two internet banking terminals. Customers would be able to access these select services 24x7. The idea behind the service centres is to enable customers who do not have the time to visit bank branches to carry out bank transactions with ease. At first, E-Lobby would be set up in Chandigarh, Panchkula and Ambala. Later, more such centres would be set up in other places.