Markets start on a positive note

Wed, 21 Apr 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have managed to hold on to their gains since then. Other key Asian markets are also trading in the positive with Japan (up 1.5%) leading the pack of gainers. The US markets closed higher by 0.2% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with construction and metal majors finding favour. The BSE-Sensex is trading higher by around 50 points, while the NSE-Nifty is up by about 20 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.6% and 1% respectively. The rupee is trading at 44.5 to the US dollar.

Auto stocks have opened the day on a positive note. Gainers here include TVS Motor and Escorts. As per a leading business daily, M&M has achieved a 25% market share in the light commercial vehicle (LCV) segment in the northern and western regions. This is on the back of the company's mini truck Maxximo, which was launched in these markets about a month back. M&M has recently launched Maxximo in the eastern region and plans to introduce it in the southern region as well. The company has a capacity about 2,500 mini trucks per month at its Chakan plant. It plans to increase capacity if demand remains strong in the next few months. The size of India's mini truck market is about 130,000 vehicles per annum. It has been growing at a rate above 25% YoY reflecting the booming auto market in India.

Banking stocks have opened the day on a positive note. Gainers here include Axis Bank and Yes Bank. Axis Bank announced its FY10 results yesterday. It reported a net interest income growth of 7% YoY on the back of a 28% YoY growth in advances. With a higher proportion of current and savings accounts, the differential in lending and borrowing rates aided the improvement in the bank's net interest margin (NIM) by a healthy 0.5%. NIM moved up to 3.8% in FY10 from 3.3% in FY09. Net profits grew by 39% YoY backed by higher other income (up 36% YoY), as well as a cut back on provisioning. Net NPA to advances moved marginally higher at 0.36% at the end of FY10 as against 0.35% in FY09. Capital adequacy ratio remained comfortable at 15.8% at the end of FY10.