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Profit booking drag indices lower
Tue, 25 May 11:30 am

Indian markets slipped further into the red over the last two hours of trade. While profit booking was seen in heavyweights across the board, selling pressure was particularly seen in stocks from the power, metal and consumer durable space.

BSE-Sensex is trading down by 294 points while NSE-Nifty is trading 92 points below the dotted line. BSE-Midcap index is trading lower by 1.6% while the BSE-Smallcap index is trading 1.7% below yesterday's closing. The rupee is trading at 47.29 to the US dollar.

Opto Circuits announced its 4QFY10 and FY10 results yesterday. The company's top line for the year grew by 32% YoY. This was higher growth seen in the company's international business. Operating margins expanded by 2.4% as a result of fall in raw materials costs, staff costs and other expenditure as a percentage of sales. Net profit for the company increased by 25% YoY on the back of increase in sales, lower operating costs and lower interest expense partly offset by lower other income and higher tax expense. For the quarter, the company's sales increased by 57% YoY while net profits increased by 19%. Going forward, the company is expected to perform well on the back of new product launches.

As per a leading financial daily, aluminum manufacturing major, Hindalco Industries is planning to raise Rs 75 bn debt to finance its new factory project, Mahan Aluminum. Mahan Aluminum which is situated in Madhya Pradesh boasts of a 359-ktpa aluminum smelter and a 900 Mw captive thermal power plant and is expected to be ready by September 2011 at a cost of Rs 92 bn. Mahan Aluminum is part of Hindalco's plan to set up 5 projects at a cost of Rs 400 bn over the next 3 years. For these projects, Hindalco has already raised Rs 29 bn through QIP in November 2009. These projects will be set up in 2 phases and the first phase is expected to be complete by 2011 while the second is expected to be completed by 2013. These projects will add 3 mtpa alumina refinery capacity to Hindalco and will help the company cater to the growth in demand for aluminum.

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