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Tech stocks drag indices lower
Mon, 21 May Closing

Indian stock market indices shed most of the gains during the closing hours of the session and ended marginally above the dotted line today. While BSE-Sensex closed higher by around 30 points, gains on the NSE-Nifty came in at around 14 points. The BSE Mid cap and BSE Small cap indices too ended the session marginally in the positive. Tech blue chips and stocks from the power stocks and commodity sectors bore the maximum brunt of profit booking in today's session.

Most other Asian indices closed higher today with European indices too trading higher currently. The rupee was placed Rs 54.89 to the dollar at the time of writing.

Amidst the ongoing tussle between National Thermal Power Corporation (NTPC) and Coal India (CIL) over signing of Fuel Supply Agreements (FSA), the power major will continue to get coal for the current fiscal even if FSAs are not signed. Although memorandum of understanding expired in March 2012, the coal major has been directed by the government to continue its coal supply to NTPC. The pending FSAs, which NTPC is not ready to sign, are mainly for units completed till 2011 existing power stations. In FY12, CIL had powered NTPC's plants by supplying 36 million tonne of coal and the fuel supply in the current financial year is estimated at 90 million tonne, based on the Presidential directive to CIL to fuel 80% of requirement. Presently, NTPC owes nearly Rs 4 bn to CIL and is expected to soon clear these dues.

Garments and home textiles major Alok Industries reported a good set of numbers for the fourth quarter and financial year 2011-12 (FY12). The net sales grew by 39% on the back of 36% YoY growth in exports. Exports comprised nearly 31% of net sales in FY12. Operating margins (EBIDTA) maintained at 29.5% in FY12. Net profits for FY12 came in 6% YoY lower due to mark to market foreign exchange losses of Rs 1.2 bn in FY12. The company completed partial sale of its real estate holding and received token payments during 4QFY12. Also it completed the expansion of polyester unit from 3 lac tons to 5 lac tons. The company continued to have debt to equity ratio in excess of 1.9 times at the end of March 2012.

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