The morning session saw the Indian stock markets tread cautiously as they barely managed to stay afloat. However, the momentum changed post noon as buying activity across index heavyweights intensified. This momentum was sustained in the final trading hour as well and the indices closed well above the dotted line. While the BSE-Sensex closed higher by around 147 points (up 0.8%), the NSE-Nifty closed higher by around 47 points (up 0.8%). The BSE Midcap and BSE Small cap also notched gains of 0.4% and 1% respectively. Gains were largely seen in IT, metals and oil & gas stocks.
As regards global markets, Asian indices closed mixed today while European indices have opened firm. The rupee was trading at Rs 44.5 to the dollar at the time of writing.
Engineering stocks closed mixed today. While L&T, BHEL and Voltas led the pack of gainers, ABB and Crompton Greaves closed in the red. State-run power equipment major Bharat Heavy Electricals (BHEL) has completed the commissioning of India's first 525 MW thermal power plant for the Maithon power project in Jharkhand. The greenfield power project is a joint venture between Tata Power and Damodar Valley Corporation. This was the first order secured by BHEL for the new ultra mega power projects (UMPPs) of 525 MW. Afterwards, BHEL has secured orders for four more such units. The company is in the process of augmenting its capacity to 20,000 MW per year from existing 15,000 MW per annum. At the end of FY11, BHEL's order book stood at approximately 3.95 times its trailing 12 month revenues.
HDFC Bank declared the results for the first quarter of financial year 2011-12 (1QFY12). The bank has reported 19% YoY growth in net interest income and 34% YoY growth in net profits for the period. With its customer base nearing 22 m, HDFC Bank managed to once again grow well in excess of the industry average. Backed by more than 28% YoY growth and 36% YoY growth in loans to retail customers and large corporate respectively, the bank has managed the balance sheet expansion was without compromising on margins and quality. The 15% YoY growth in CASA deposits kept the net interest margins (NIMs) stable at 4.2% (4.3% in 1QFY10) despite the rise in interest costs. The detailed breakup of retail loan portfolio shows that the bank has adopted a cautious stance with regard to home and auto loans as well as lending against securities over the past 12 months. The stock ended marginally lower in today's trade.