The Indian stock markets extended their losses in the mid-session as equities continue to lose investors' attention. Almost all sectoral indices are trading with major losses; the Capital goods sector has under-performed the most with a loss of nearly 2.3%.
The S&P BSE Midcap plunged over 700 points in trade to break below its crucial psychological level of 27,000. The NSE-Nifty plunged over 202 points. BSE Midcap is trading lower by 2.7% while the S&P BSE Smallcap is trading lower by 2.75%. At the time of writing, the INR was trading at 63.59 to the US$.
Private bank stocks are trading in the red with ICICI Bank and Kotak Mahindra Bank leading the pack of losers. Private sector lender Kotak Mahindra Bank has announced its standalone and consolidated results for the quarter ended March 2015. During the quarter, the company's consolidated total income grew by 29.1% year-on-year (YoY) to Rs 61,722.6 million. The rise in the topline has been driven by 51.7% YoY jump in other income which stood at Rs 26,552.2 million during the quarter. At the bottomline level, consolidated net profit increased by 37.6% YoY to Rs 9,126 million. During the quarter, the net profit margin expanded from 22.3% in 4QFY14 to 26.4% in 4QFY15. It must be noted that the bank has approved a bonus share issue in the ratio of 1:1 which is subject to shareholder approval. At the time of writing, the stock of Kotak Mahindra Bank was trading lower by over 4%.
Engineering stocks are also trading in the red with AIA Engineering and Elecon Engineering witnessing severe selling pressure. As per a leading financial daily, Voltas Ltd, India's largest air conditioning company is aiming to sell 1 million units of residential air conditioners this year on the back of growing demand from tier II and III cities. Also, the company today forayed into the air cooler segment and has launched a range of four air coolers ranging between Rs 8,000 to Rs 15,000. The company's management is aiming to be among the top three air cooler brands and has set a revenue target of Rs 1,500 million in three years. The stock of Voltas Ltd is currently down nearly 4%.