Barring China (up 0.4%) and Indonesia (up 0.1%), all major Asian stock markets have opened the day on a weak note with stock markets in Japan (down 1%) and Hong Kong (down 0.5%) leading the losses. The Indian share markets have also opened the day on a negative note. Barring IT and consumer durables, most sectoral indices have opened in the red with stocks in the realty and power space leading the losses.
IT stocks have opened the day on a firm note with Tata Consultancy Services (TCS), Wipro and HCL Infosystems leading the gains. Leading Indian software services exporter TCS has announced its financial results for the quarter ended June 2014 (1QFY15). During the quarter, the company's consolidated revenue stood at Rs 221,110.3 m, higher by 2.6% on a quarter-on-quarter basis. The operating profit was lower by 5% QoQ on account of higher expenditure. Operating profit margin declined from 31% in 4QFY14 to 28.7% in 1QFY15. At the bottomline level, consolidated net profit increased by 3.9% QoQ to Rs 55,676.8 m. Net profit margin improved marginally from 24.9% in 4QFY14 to 25.2% in 1QFY15. The company's board of directors has declared an interim dividend of Rs 45 per equity share of Rs 1 each. This includes a special dividend of Rs 40 per equity share. The interim dividend will be paid to the shareholders on August 08, 2014.
Auto ancillary stocks have opened the day on a mixed note with Rico Auto and NRB Bearings leading the gains. However, Carborundum Universal and Exide Industries are trading in the red. As per a leading financial daily, the auto components sector witnessed its first ever decline in turnover in the financial year 2013-14 (FY14). The main reasons for this decline are said to be the increasing pressure of Chinese imports and tough conditions in the domestic automobile sector. The auto components sector reported a turnover of Rs 2.1 trillion, lower by 2% year-on-year (YoY). However, as per industry body Automotive Component Manufacturers Association of India (ACMA), the auto components industry is expected to post up to 6% YoY growth in the current fiscal year 2014-15 (FY15).