The Sensex today is down by around 60 points (0.3%), while the NSE-Nifty is down by around 18 points (0.2%). The midcap and smallcap stocks have however opened in the green with the BSE Mid Cap index and the BSE Mid Cap index up by around 0.1% each. The rupee is trading at 61.64 to the US Dollar.
Auto stocks have opened the day on a mixed note with Force Motors Ltd and Bajaj Auto Ltd leading the pack of gainers. However, Tube Investments Ltd and Tata Motors Ltd are leading the losses. Bajaj Auto has announced its results for the second quarter of the financial year 2014 (2QFY14). The sales volumes during the quarter fell to 961,330 units from 1049,208 units in the corresponding quarter last year (down 8.4% YoY). However, gross revenue were up by 4.6% YoY mainly on account of rupee depreciation. The export revenue for the quarter was up by 26 % YoY. The operating margins for the quarter stood at 23.1% as compared to 20% in the corresponding quarter last year. The company has reported a 13% year on year (YoY) increase in the net profits on the back of higher realizations per vehicle, growth in exports and tighter cost control. As per the management, the Pulsar mix was relatively good in the second quarter. Further, the management has stated that exports are likely to do well.
Energy stocks have opened the day on a mixed note with Cairn India Ltd and Oil and Natural Gas Corporation Ltd leading the gains. However, Jindal Drill Ltd and Petronet LNG Ltd were leading the losses. The leading lubricant manufacturer Castrol India Ltd has announced results for the third quarter of the financial year 2013 (3QCY13). The company reported a flat growth in sales during the quarter with revenues at Rs 7.2 bn. As per the management, despite an unfavourable economic scenario and depreciation in the rupee, the gross margins for the quarter improved. This was on account of higher sales realizations, lower base oil prices and effective cost management strategy. The operating profit margins for the quarter stood at 21% as compared to 16.8% in the corresponding quarter last year. The net profit for the quarter grew by 22% YoY. The management has suggested that the business environment will continue to be challenging. Further, the volatility in the rupee, high crude oil as well as base oil prices are likely to impact the growth and margins in the near term.