On the back of heavy selling pressure witnessed in the US stock markets in the previous trading session, Asian stock markets have taken the cue and opened the day on a very weak note. Stock markets in Hong Kong (down 5.6%), Indonesia (down 3.5%), Japan (down 3.7%) and South Korea (down 6.2%) are leading the pack of losers. The Indian stock markets have also opened the day with heavy losses. Stocks in the metal and technology space are facing severe selling pressure.
The BSE-Sensex is trading lower by around 406 points (2.4%), while the NSE-Nifty is down 121 points (2.4%). The midcap and smallcap stocks are in the negative as well with both the BSE Midcap and BSE Small cap indices down by 2.1% and 2.4% respectively. The rupee is trading at 45.34 to the US dollar.
Engineering stocks have opened the day on a weak note with L&T and BHEL in the red. Larsen & Toubro (L&T) has announced the first quarter results of financial year 2011-2012 (1QFY12). The company has reported 21.1% YoY and 12.0% YoY growth in sales and net profits respectively. Operating profits increased by 12.1% YoY for the quarter. However, operating margins declined by 0.9% to 11.9% during the quarter. The total order book increased by 26% YoY and stood at Rs 1,361 bn at the end of June 2011. The major orders during the quarter came from buildings and factories, infrastructure, power generation and minerals & metals among others. The company has also appointed Mr R. Shankar Raman as the new Chief Financial Officer.
Pharma stocks have opened the day on a weak note with Cipla, Ranbaxy and Lupin in the red. Lupin recalled one batch of Losartan Potassium Tablets. This medicine is used for treating high blood pressure. The recall took place from the US market as it was found that it exceeded permissible impurity level. The US Food and Drug Administration (USFDA) in its enforcement report said that Lupin was recalling a batch of 34,368 bottles as the drug did not meet specification for impurities at the nine-month stability station. The bottles that were manufactured in the Goa facility were getting expired in July 2012. The company in a statement said that the impurity was only found in a particular batch and as a precautionary measure the company has voluntarily recalled the batch.