Barring China (up 0.6%) and Hong Kong (up 0.2%), the other major Asian stock markets have opened the day with losses. Stock markets in Malaysia (down 1%), and Indonesia (down 0.9%) are leading the pack of losers. The Indian equity markets indices have also opened the day in the red. Stocks in the realty and metal space are leading the losses. However, information technology stocks are trading firm.
The Sensex today is down by around 118 points (0.6%), while the NSE-Nifty is down by around 70 points (1.2%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 1.1% and 0.5% respectively. The rupee is trading at Rs 61.11 to the US dollar.
Majority of the pharma companies are trading in red, with Dishman Pharma and Elder pharma leading the pack of losers. Dr Reddy's has announced its results for the quarter ended June 2013. Net sales of the company grew by 12% YoY led by growth in export formulations. In the export formulations, North America witnessed a growth of 37% YoY on the back of low competition launches done during the quarter. However, the domestic segment and the PSAI (Pharmaceuticals service and active ingredients) segment witnessed flat and 6% YoY growth respectively during the quarter. Operating margins declined by 0.7% YoY to 19% due to increase in operating expenses. Bottom line grew by 7% YoY due to the surge in taxes. Taxes increased by 45% YoY during the quarter. Dr Reddy's was trading down by 0.3%.
Banking stocks have opened the day on a negative note with Karur Vysya Bank and IndusInd Bank leading the losses. ING Vysya has reported its first quarter results for the financial year 2013-2014 (1QFY14). The bank reported an increase of 24% YoY in net interest income during the quarter. This was mainly due to a 13% YoY growth in advances. The net interest margin improved to 3.6% in 1QFY14 as compared to 3.4% in 1QFY13. The cost to income ratio declined to 52% during the quarter as compared to 56% seen during the same time last year. Despite the substantial increase in provisioning costs, the bottom line increased by 35% YoY. The capital adequacy ratio stood at 12.6% at the end of June 2013 as against 13.2% in March 2013.