Asian stock markets have opened the day on a mixed note with stock markets in China (down 1%) and Japan (down 0.3%) leading the losses. However, markets in Indonesia (up 0.2%) and Singapore (up 0.2%) are trading firm. The Indian share markets indices have opened the day on a firm note. Stocks in the power and auto space are leading the gains. However, information technology and metal stocks are trading weak.
The Sensex today is up by around 31 points (0.2%), while the NSE-Nifty is up by around 6 point (0.1%). Mid and small cap stocks are also trading in the green with the BSE Mid cap and BSE Small Cap indices up by around 0.2% and 0.1% respectively. The rupee is trading at Rs 54.38 to the US dollar.
Auto stocks have opened the day on a firm note with Hero MotoCorp, TVS Motor Company and Maruti Suzuki leading the gains. India's leading two-wheeler manufacturer Hero MotoCorp has announced its financial results for the quarter ended March 2013. During the quarter (4QFY13), the company reported sales of Rs 60,724.7 m, marginally higher by 1.8% year-on-year (YoY). Operating profits stood at Rs 8,497.8 m, lower by 8.2% YoY. While interest expenses increased by 4.8% YoY to Rs 30.7 m, depreciation charges declined by 5.3% YoY to Rs 2,655.3 m. At the bottomline level, net profits declined by 4.9% YoY to Rs 5,742.3 m. Net profit margins declined from 10.1% in 4QFY12 to 9.5% in 4QFY13. The slowdown in the auto sector and increasing competition impacted the company's profitability. It must be noted that the company has reported a decline in net profits for the third consecutive quarter.
PSU bank stocks have opened the day on a firm note with Bank of Maharashtra, Indian Bank and Union Bank leading the gains. Public sector lender IDBI Bank has announced its financial results for the quarter ended March 2013. During 4QFY13, the bank reported interest income of Rs 63,968.9 m, higher by 5.2% YoY. Other income shot up by 45.8% YoY to Rs 11,468.9 m during the quarter. Operating expenses increased by 25.1% YoY to Rs 9,927.4 m. Operating profits before provisions and contingencies increased by 32.4% YoY to Rs 15,941.3 m. Provisions and Contingencies zoomed up by 206.7% YoY to Rs 8,691.2 m during the quarter on account of substantial increase in provisioning towards non-performing and restructured assets. As a result, net profits during the quarter declined by 28.1% YoY to Rs 5,544.5 m. Net interest margins dropped sharply from 12.7% in 4QFY12 to 8.7% in 4QFY13.