The major Asian stock markets have opened the day on a positive note with stock markets in China (up 0.6%), Japan (up 1.1%) and South Korea (up 0.5%) leading the pack of gainers in the region. The Indian share market indices have also opened the day in the green. Barring FMCG and auto, all sectoral indices have opened on a positive note with energy and realty stocks witnessing maximum gains.
The Sensex today is up by around 80 points (0.4%), while the NSE-Nifty is up by around 20 points (0.4%). The mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% each. The rupee is trading at Rs 52.92 to the US dollar.
Telecom stocks have opened the day on a positive note with Reliance Communications and Tata Teleservices Ltd leading the pack of gainers. As per a leading financial daily, the Telecom Commission (TC) will meet tomorrow to decide the quantum of airwaves that can be retained by incumbent GSM operators in the 900 MHz band. The meeting is ahead of the government's plans to take away these airwaves and resell it through an auction process in early 2013. The TC will examine three proposals. These includes refarming all airwaves held by incumbents in the 900 MHz band, or allow these companies to retain either 2.5 MHz or 5 MHz of airwaves in this band. The existing operators have strongly opposed the proposal to refarm airwaves, which involves redistribution of the highly efficient airwaves in 900 MHz band, that is largely held by companies like Bharti Airtel and Vodafone and Idea Cellular and substituting it with frequencies in the 1,800 MHz.
Private banking stocks have opened the day mainly in green with Karnataka bank and Lakshmi Vilas bank leading the gains. Axis Bank has reported results for the second quarter of fiscal year 2013 (2QFY13). The net profit of the bank has registered an increase of 22% on a year on year (YoY) basis. This is mainly on account of an increase in the retail lending and fee income. The gross nonperforming assets (NPA) and net NPA figures stood at 1.1% and 0.33% respectively at the end of the quarter. This was against gross NPA and net NPA of 1.08% and 0.34% in the corresponding period last year. The net interest income (NII) of the bank was up 16% YoY for the quarter. The bank recorded net interest margins (NIMs) of 3.46% in the quarter, as compared to 3.37% during 1QFY13. The savings deposits of the bank registered a growth of 20% YoY while its retail term deposits and retail advances grew by 39% YoY and 51% YOY during the quarter.