The Indian markets have started today's session on a strongly positive note. The benchmark indices opened close to the breakeven mark, but soon surged higher into positive territory. They have firmly held on to their gains since then. Other key Asian markets are in the green with Japan (up 2.7%) leading the pack of gainers. The US markets closed higher by 1.5% yesterday.
Currently in India, heavyweights from the BSE-Sensex are trading strong with realty, consumer durables and banking stocks finding investors' favour. The BSE-Sensex is trading higher by around 135 points, while the NSE-Nifty is up by about 40 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices both trading higher by 0.7% each. The rupee is trading at 46.63 to the US dollar.
Exide Industries announced its 1QFY11 results. The company’s net sales grew by 28% YoY during 1QFY11. Operating margins on the other hand contracted by 0.4% YoY on the back of higher raw material and purchase of traded goods (as a percentage of sales). Net profits increased by 35% YoY on the back of higher other income and a slow increase in depreciation costs. Exide’s lower tax outgo also aided the bottomline improvement. On the back of this energetic start to FY11, the stock of Exide has begun the day on a strong note.
As per a leading business daily, downstream fuel companies IOC and BPCL are evaluating a proposal to buy petrol pumps owned by Royal Dutch Shell. The Indian subsidiary of global energy behemoth Shell wants to sell some of the 80 petrol pumps that it has in India. IOC would likely not bid for outlets where the company already has presence, and would look at filling in the gaps in areas where it does not. As per reports, Shell outlets on offer are mostly in prime locations in big cities like Bangalore. Further, their cost of land alone is estimated at over Rs 40 m each. However these oil marketing companies may find it difficult to acquire these pumps at good valuations as private companies like RIL and Essar Oil are also looking to expand their own network of outlets after petrol prices were deregulated. Both IOC and BPCL are trading marginally in the positive currently.