The major Asian stock markets have opened in the green with stock markets in China (up 1.1%) and Japan (up 1.2%) leading the gains. The Indian stock market indices have also opened the day on a firm note. The sectoral indices have opened mixed with stocks in the capital goods and software sector leading the gains. However, stocks in the metal and FMCG were leading the losses.
The Sensex today is up by around 14 points (0.1%), while the NSE-Nifty is up by around 3 points (0.1%). Mid cap and small cap stocks have opened also opened in the green with the BSE Mid Cap index and BSE Small Cap index up by around 0.1% each. The rupee is trading at Rs 59.68 to the US dollar.
Finance stocks have opened mainly on a mixed note with Mahindra Finance and IndiaBulls Financial Services leading the gains. However, Prime Securities and Geojit BNP Paribas were facing selling pressure. Infrastructure Development and Finance Company Ltd (IDFC) has announced its results for the first quarter of the financial year 2013-14 (FY14). The consolidated income from operations registered a growth of 25% year on year (YoY) for the quarter. The advances for the quarter grew by 13% YoY. However, the disbursements and approvals witnessed a decline mainly on account of slowdown in infrastructure activity and other macro concerns. The total assets under management (AUM) stood at Rs 486 bn at the end of June 2013. The net interest margins (NIMs) during the quarter declined marginally to 4.1%, as compared to 4.3% in the corresponding quarter last year. The net profits for the quarter grew by 47% YoY. This was mainly on account of lower provisioning during the quarter. The capital adequacy ratio at the end of the quarter stood at 23% while net NPAs came at 0.2%.
Cement stocks have opened the day on a mainly in the red with Madras Cements and Mangalam Cements leading the losses. The cement major Ultratech Cement has announced results for the quarter ending June 2013. The company has reported a decline of 2.2% in the net sales on a year on year (YoY) basis. This was mainly on account of slowdown in the home building and infrastructure projects in the country. The average realization per tonne of cement sold stood at Rs 4,823, down 1.8% YoY. Due to lower realizations and high cost, the operating margin during the quarter declined to 21.2%.The net profits for the quarter declined by 13.5% YoY. As per the management, the business outlook remains challenging and the demand growth for cement in the current fiscal year is expected to be at 6%. In the long term, the management expects cement demand to grow at more than 8%. The company has earmarked Rs 137 bn to increase capacity by 10 million tons by 2015.