Indian share markets open flat

Wed, 23 Oct 09:30 am

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Asian stock markets have opened the day on a mixed note with Indonesia (up 1%), Malaysia (up 0.6%) and Singapore (up 0.4%) leading the gains. However, markets in China (down 1.2%), South Korea (down 0.6%) and Taiwan (down 0.3%) are trading weak. The Indian equity market indices have opened the day on a flat note. Stocks in the power and metal space are leading the gains. However, information technology stocks are trading weak.

The Sensex today is marginally down by around 9 points (0.04%), while the NSE-Nifty is down by around 3 pointS (0.04%). However, mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.5% each. The rupee is currently trading at Rs 61.53 to the US dollar.

Information Technology stocks have opened the day on a weak note with Wipro Ltd, Infosys Ltd and Tech Mahindra leading the losses. India's third largest IT services exporter Wipro Ltd has announced its consolidated financial results for the second quarter of the financial year 2013-14 (2QFY14). During the quarter, consolidated net sales stood at Rs 109,907 m, higher by 12.9% on a quarter-on-quarter (QoQ) basis. Operating profits stood at Rs 25,038 m, reporting a rise of 23.9% YoY. The company's operating margins improved by 200 basis points (2%) from 20.8% in 1QFY14 to 22.8% in 2QFY14. At the bottomline level, consolidated net profits increased by 19% QoQ. Net profit margins improved from 16.7% in 1QFY14 to 17.6% in 2QFY14. Wipro's growth during the quarter was aided by higher spending by its biggest clients. The company's employee strength declined marginally and stood at 147,216 at the end of September 2013.

Indian Pharma stocks have opened the day on a firm note with Biocon Ltd, Wockhardt Ltd and Orchid Chemicals leading the gains. As per a leading financial daily, Wockhardt's manufacturing plant in Kadaiya, Daman, has come under the scrutiny of UK Medicines and Healthcare Products Regulatory Agency. Britain's drug regulator has revoked the Good Manufacturing Practice (CMP) certificate for this factory. Instead the regulator will issue a restricted quality compliance certificate. This means that Wockhardt will be able to supply only "critical" products from this factory in Kadaiya. It is worth noting that this is the company's third facility to face the wrath of drug regulators and bear export restrictions within a span of a few months. Earlier this month, the UK drug regulator revoked the generic drugmaker's GMP certificate for its Chikalthana factory.