Indian stock market
extended their opening gains on buying interest in heavy weights over the last two hours of trade. Stocks from the oil and gas and auto space are the biggest gainers, while stocks from the consumer durables and FMCG space have gained the least.
The BSE-Sensex is trading up by 263 points while NSE-Nifty
is trading 35 points above the dotted line. BSE-Midcap index is up by 0.9% while BSE-Small cap index is trading 0.6% above yesterday's closing. The rupee is trading at 44.36 to the US dollar.
Auto stocks are trading firm led by Tata Motors and Escorts. Hero Honda declared its 1QFY12 results. The company's top line grew by 32% YoY to stand at Rs 56.3 bn. However net profits increased by only 13% YoY to stand at Rs 5.5 bn. This slower than top line growth was a result of higher manufacturing costs due to increase in input costs. Sales volume of the company grew by 24% YoY to stand at 1.5 m units which is the highest unit sales for any quarter. Operating margins stood at 10.2% as raw material costs went up by 37% YoY. Going forward, the company's management expects to see raw material costs soften which would help expand margins. The company has reiterated its guidance for selling 6 m units during the current fiscal.
Media stocks are trading firm led by DB Corp and Next Mediaworks. Zee Entertainment Enterprises Ltd (ZEEL) declared its 1QFY12 results. The company's sales grew by 3.1%, from Rs 6.7 bn in 1QFY11 to Rs 6.9 bn in the current quarter. Advertising revenue remained flat at Rs 3.7 bn while subscription revenue grew by 16.7% on the back of 56% YoY growth in domestic DTH sales. Net profit on the other hand fell by 13% YoY to stand at Rs 1.3 bn for the quarter. This was due to increase of 12.2% YoY in programming and operating costs and 25.1% increase in employee costs. As per a company official, Zee has suffered as a result of high inflation and the resultant tight money policy of RBI. This led to a slowdown and reduction in advertisement spending by companies.