The major Asian stock markets have opened mixed with markets in China (down 1.7%) and Hong Kong (down 0.7%) leading the losses. However, stock markets in Taiwan (up 1.0%) and Singapore (up 0.04%) have opened in the green.
The Indian markets have opened on a weak note. The Sensex is down 125 points or 0.5% and the NSE-Nifty is down 41 points or 0.5% . BSE Mid Cap and BSE Small Cap indices have also opened on a negative note, down by 0.8% each. Barring FMCG, all sectoral indices have opened in the red with stocks in realty and consumer durables sectors witnessing maximum selling pressure. The rupee is trading at Rs 63.42 to the dollar.
Cairn India Ltd has reported results for the quarter ended March 2015. The company has reported a net loss of Rs 2.4 bn during the quarter on account of one-time impairment loss in Sri Lanka amounting to around Rs 5 bn, low oil prices and forex loss of Rs 1.7 bn. Also, the company has written off Rs 5.5 bn in exploration cost for failed wells in KG basin. The topline for the quarter declined by 47% YoY. For FY15, the company has reported a decline of 22% and 64% in the topline and bottomline respectively. This was mainly due to a 20 % lower rate of realisation and 3 % lower volumes.
Further, during the quarter, the company has received an order from the Income Tax Department for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Ltd (CUHL). The latter was company's erstwhile parent company, a subsidiary of Cairn Energy Plc. As such, an amount of Rs 205 bn is alleged to be payable. The company has not agreed to this demand and has filed a writ petition before Delhi High Court. The Board has recommended a final dividend of Rs 4 per share. Along with interim dividend, this amounts to around 44.6 % of annual consolidated net profit.