Indian equity markets have remained weak during the previous two hours of trade. IT and auto are leading the pack of winners while capital goods and healthcare are facing the maximum selling pressures.
Stocks from the investment and finance sector are trading on a mixed note with Prime Securities and Indiabulls Financial Services leading the gains and India Infoline and Motilal Oswal leading the losses. HDFC declared its results for the fourth quarter and financial year 2012-13 (FY13) yesterday. Interest income has grown by 21% YoY in FY13 on the back of 31% YoY growth in retail loan book and 24% YoY growth in total loan book. Net interest margin has fallen by 0.2% to 4.3% in FY13 from 4.1% in FY12. Other income has increased by 16.9% YoY in FY13 on the back of higher gains booked on sale of investments. Net profit has grown by 17.6% YoY for FY13 which is in line with the increase in net interest income. For 4QFY13, profits have grown by 17.3% YoY despite provisions remaining flat. Capital adequacy and gross NPAs stand at 16.2% and 0.7% respectively at the end of March 2013. The Company has declared a dividend of Rs 12.5 per share for FY13 (dividend yield 1.4%). HDFC's share is trading up by 0.7%.
Engineering shares are trading on a mixed note with Finolex Cables and Praj Industries leading the gains and Opto Circuits and Manugraph India leading the losses. ABB has reported its results for the first quarter ended March 31, 2013. The Company's net profits have fallen by 10.7% YoY due to higher interest costs. The Company's interest burden has increased by almost four times to Rs 197.5 mn from Rs 54 mn during the recently concluded quarter. Total income from operations, however, has grown by 10% YoY to Rs 19.7 bn mainly on account of 32% YoY revenue growth in power system segment. ABB's share is trading down by 2.6%.