As index heavyweights continued to witness selling pressure, Indian share markets slipped deeper into the red in the post-noon trading session. Majority of the sectoral indices are trading negative with IT, capital goods and auto stocks leading the pack of losers. Consumer durable, pharma and metal are among the handful of sectors that are trading in the green.
Infosys announced its results for the quarter ended September 2012 today. The company's revenues grew by 2.5% (in rupee terms) on a quarter on quarter basis i.e. in comparison to the preceding quarter 1QFY13. In dollar terms, the growth stood at a similar figure of 2.6% QoQ. The company's operating margins however declined by 3.6% QoQ to 26.3% on the back of higher cost in sales coupled with higher selling and marketing related expenses. Nevertheless, Infosys managed to report an increase in profits of 3.5% QoQ, largely due to higher other income. During the quarter, Infosys added 39 new clients on a gross basis taking the total client count to 715.
Most of the auto ancillary stocks are trading in the positive led by Rico Auto and Sona Koyo Steering. Demand outlook in the automobile industry remained gloomy as factors such as high interest rates, rising fuel costs and slowdown in the economy continued to play spoilsport. Sales of passenger cars, motorcycles and medium & heavy commercial vehicles have slipped during the period April-September 2012. As a result, the Society of Indian Automobile Manufacturers (SIAM) recently slashed the growth forecasts for cars, motorcycles and commercial vehicle for FY13. Taking a cue from the depressed auto demand, the Automotive Component Manufacturers Association of India (ACMA) has signaled a moderation in the growth of the auto component sector. ACMA has projected the growth in the auto component sector to moderate to 8-10% in FY13 from a 15.7% growth clocked last year. The industry body has said that the investments in the sector had fallen from US$ 2-2.5 bn in FY11 to around US$ 1.6-1.9 bn in FY12.