Asian stock markets have opened the day on a positive note. Stock markets in Japan (up 1.3%), Korea (up 1.1%) and Hong Kong (up 0.2%) are leading the gains in the region. The Indian stock markets have opened the day on a firm note as well. Stocks in the realty and consumer goods (FMCG) are leading the gains.
The BSE-Sensex is trading up by 107 points (0.6%) and the NSE-Nifty is up by around 27 points (0.5%). Midcap and small cap stocks are trading in the positive zone as well, with the BSE Midcap and BSE Small cap indices up by 0.4% and 0.5% respectively. The rupee is trading at 44.43 to the US dollar.
Pharma stocks have opened the day above the dotted line with Sun Pharma and Glenmark Pharma in the green. Cadila Healthcare has announced its first quarter results for the financial year 2011-2012 (1QFY12). The company has reported 9.9% YoY and 15.1% YoY growth in sales and net profits respectively for the quarter. Net sales growth was muted during the quarter due to slower growth in domestic and the US market. Operating margins (EBITDA) decreased by 1.9% due to sharp increase in the raw material cost as well as due to higher employee costs. Operating margins were also negative impacted by lower domestic business sales. Net profit growth was higher than the sales growth due to the reduction in interest costs and substantial increase in the other income. The stock is currently witnessing selling pressure.
Engineering stocks have opened the day on a lackluster note with Crompton Greaves, Gammons India and Havells India trading in the red. Crompton Greaves has announced its first quarter 2011-2012 (1QFY11) results. The company reported a 5.9% YoY increase in its sales. The growth was driven by the industrial systems and power systems segments which grew by 18% YoY and 4% YoY respectively. The consumer products division recorded a muted growth of 2% YoY. However, net profits declined sharply by 58.4% YoY. The sharp decline was mainly on account of higher raw material costs during the quarter. The stock of the company closed down by nearly 15% yesterday. It is currently trading in the red.