Asian stock markets have opened the day on a mixed note with stock markets in South Korea (up 0.7%), Japan (up 0.4%) and Taiwan (up 0.3%) leading the gains in the region. The Indian share market indices have opened the day on a firm note. Stocks in the metal and banking space are leading the gains. However, realty and power stocks are facing selling pressure.
The Sensex today is up by around 18 points (0.1%), while the NSE-Nifty is up by around 2 points (0.04%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% and 0.5% respectively. The rupee is trading at Rs 55.63 to the US dollar.
Steel stocks have opened the day on a firm note with Tata Steel, JSW Ispat and JSW Steel leading the gains. Steel major Tata Steel has announced its financial results for the quarter ended June 2012 (1QFY13). Consolidated net sales during the quarter stood at about Rs 335.5 bn, reporting a rise of merely 1.9% against the corresponding quarter of the previous financial year (1QFY12). At the bottomline level, the company's consolidated net profits dipped by about 89% from Rs 53.5 bn in 1QFY12 to nearly Rs 6 bn in 1QFY13. It must be noted that the company had reported one-time gains of about Rs 40 bn in 1QFY12. Excluding the gains, net profits declined by about 55% YoY. The company's performance has been affected due to the sluggishness in its European operations, which account of two-thirds of its total capacity.
Mining stocks have opened the day on a firm note with Coal India Ltd (CIL), Minerals and Metals Trading Corporation of India Ltd (MMTC Ltd), and National Mineral Development Corporation (NMDC) leading the pack of gainers. Leading state-run coal miner CIL has announced its financial results for the quarter ended June 2012 (1QFY13). During the quarter, net sales increased by 13.5% year-on-year (YoY) from about Rs 145 bn in 1QFY12 to Rs 165 bn in 1QFY13. Higher sales coupled with increased e-auction realisations helped the topline growth. Coal production during the quarter stood at 102.4 million tonnes (MT), a rise of 6.3% YoY. The company's expenses rose by 20.8% YoY from Rs 101.1 bn in 1QFY12 to Rs 122.2 in 1QFY13. The reason for the higher expenses was the wage agreement which impacted the quarter by Rs 12 bn. At the bottomline level, net profits were higher by 7.8% YoY at Rs 44.7 bn.