Asian stock markets have opened the day on a weak note. Stock markets in China (down 1.9%), Hong Kong (down 0.9%), South Korea (down 0.9%), Japan (down 0.6%) and Indonesia (down 0.6%) are trading in the red. The Indian stock markets have opened the day on a weak note as well. Stocks in the consumer goods (FMCG) and IT are leading the losses. However, Oil & Gas stocks are trading in the green.
The BSE-Sensex is trading down by 12 points (0.1%) and the NSE-Nifty is down by around 7 points (0.1%). Midcap and small cap stocks are trading in the green, with the BSE Midcap and BSE Small cap indices up by 0.1% and 0.2% respectively. The rupee is trading at 44.33 to the US dollar.
Oil & Gas stocks are trading in the green with Cairn India and IOC in the green while Oil & Natural Gas Corp.(ONGC) in the red. Cairn India Ltd board is supposed to meet on Tuesday after the Government's conditional nod for the Cairn Energy-Vedanta Resources deal. The board previously said that the company would not share any royalty burden of the Rajasthan oilfields. The board meet will therefore test the skills of the Chairman of Cairn India to persuade the board for the deal. As the Government has set certain conditions including the issue of royalty raised by ONGC, it would require changes in the contract, for which the approval of board member is required. Cairn Energy Plc had proposed to sell its stake in Cairn India to Vedanta Resources. However, it faced hurdles in getting approvals from the Indian government.
IT stocks have opened the day on a weak note with Patni Computers, Infosys and Mphasis leading the losses. NIIT Ltd has recently released its first quarter results for the financial year 2011-2012 (1QFY12). The company has reported a 15.5 YoY growth in its total revenues. The growth was driven by a strong traction in volumes across all of its business segments. The operating margins declined by 0.9% YoY to 9.6% as compared to 10.3% seen during the same period last year. This was on account of higher development, production and execution expenses (as a percentage of sales). This in turn was due to the rollout of the Cloud campus product of the company. Lower operating margins as well as higher depreciation charges led the net profits to grow by just 1% YoY. Net margins declined marginally to 4.1% as compared to 4.7% seen during the same period last year. The stock has opened the day in the green.