Indian stock markets open in the red

Fri, 25 Oct 09:30 am

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   11:30 am   

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The major Asian stock markets have opened the day in the red with Japan (down 1.2%), South Korea (down 1.0%) and China (down 1.0%) leading the losses. The Indian stock markets have also opened the day on a weak note. The sectoral indices have opened on a mixed note with stocks in the auto and capital goods leading the losses. However, stocks in the consumer durables and software sector were witnessing gains.

The Sensex today is down by around 16 points (0.1%), while the NSE-Nifty is down by around 13 points (0.2%). The midcap and smallcap stocks have however opened in the green with the BSE Mid Cap index and the BSE Small Cap index up by around 0.2% and 0.1% respectively. The rupee is trading at 61.47 to the US Dollar.

Indian Pharma stocks have opened the day on a mixed note with Piramal Enterprises Ltd and JB Chemicals Ltd leading the losses. However, Panacea biotech Ltd and Wockhardt Ltd are leading the gains. The biotech major Biocon Ltd has announced results for the second quarter of the financial year 2013-14 (2QFY14).The company has reported a 17% year on year growth in the revenues during the quarter. The two main verticals of the company - biopharmaceuticals and contract research registered a revenue growth of 18% YoY and 46% YoY respectively during the quarter. The operating profits for the quarter grew by 13% YoY. The net profits for the quarter registered a growth of 13% YoY. This was despite an exceptional forex loss which was more than offset by strong performance in the contract research arm. During the quarter, the company has launched its second novel biologic, Alzumab, for psoriasis in India and it has already witnessed a strong acceptance in the market. As per the management, the research services arm which contributes around 25% to the group revenues is witnessing a strong growth and the company is preparing for a public offering.

Telecom stocks have opened the day mainly in the red with ITI Ltd and AGC Networks Ltd leading the losses. However, ADC India Communications Ltd and Reliance Communications Ltd have opened on a positive note. The telecom major Idea Cellular Ltd has announced results for the second quarter of the financial year 2013-14 (2QFY14). The consolidated revenues for the quarter grew by 19% year on year (YoY). The growth was mainly led by increase in the subscriber base and growth in the total minutes billed during the quarter. The operating profits for the quarter were up by 38.6% YoY, with margins at 31.2% versus 26.8% in 2QFY13. The net profits for the quarter were up by a whopping 86.5% YoY on back of strong performance at the operating level and lower interest expenses during the quarter. The net profit margins for the quarter stood at 7.1%, as compared to 4.5% in 2QFY13.