Indian equity markets had a rather volatile trading session today. For the larger part of the day, the indices languished deep into the red as persistent selling activity prevailed. While there was a brief foray into the positive in the later hours, profit booking once again pushed the indices below the dotted line. While the BSE-Sensex today closed lower by 68 points, the NSE-Nifty closed lower by 23 points. The BSE Mid Cap and the BSE Small Cap index were not spared either and lost 1% each. Losses were largely seen in auto, IT and FMCG stocks.
As regards global markets, most Asian indices closed in the red today while European indices have also opened weak. The rupee was trading at Rs 61.08 to the dollar at the time of writing.
Domestic pharma stocks closed mixed today. While Aurobindo Pharma, Ranbaxy and Glenmark were the key gainers, Lupin, Sun Pharma and Wockhardt were at the receiving end. Lupin announced results for the first quarter ended June 2013. The company's topline grew by a subdued 9% YoY during the quarter led by the export formulations and API businesses. The domestic business witnessed a 5% YoY drop in revenues due to the impact of the government's new drug pricing regulation. Operating margins improved by 3% to 22.1% in 1QFY14, resulting in the 26.2% YoY growth in operating profits. This was helped by lower growth in its operating expenses. Bottomline surged by 43% YoY helped by decline in interest costs and depreciation charges. However, tax expenses increased by 80% YoY for the quarter.
Tube Investments also announced results for the first quarter ended June 2013. Tube's revenues fell by 10% YoY during the quarter on the back of subdued conditions in the auto and industrial sectors. In terms of business segments, the bicycle division's revenues fell by 8% YoY largely due to the 7% YoY drop in volumes. The engineering division recorded a decline of 7% YoY in revenues. As far as the metal formed products division is concerned, revenues declined by 16% YoY. This was largely due to the drop in doorframes volumes and railway wagons. Tube's operating profits fell by 21% YoY during the quarter, as operating margins shrunk by 1.2% YoY to 8.7%. This was on the back of higher staff costs and other expenditure (as a percentage of sales). Poor performance at the operating level coupled with higher interest costs led to the 58% YoY plunge in net profits. The stock closed higher by 4% today.