Smaller indices buck the trend

Mon, 31 Oct Closing

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The benchmark indices in Indian stock markets had a weak outing today. The indices opened weak and stayed on the backfoot for most of the session. Towards mid-session the indices regained momentum, but could not sustain the same. Towards the end of the session, selling pressure intensified and the indices closed on a weak note. While the FMCG stocks were in favour, oil & gas and metal stocks ended weak. The BSE-Sensex closed lower by around 100 points (down 0.6%) and the NSE-Nifty lost around around 34 points (down 0.6%). The BSE Mid Cap and the BSE Small Cap indices, however, bucked the trend. They gained 0.4% and 0.2% respectively.

As regards global markets, other Asian markets also closed lower today while European indices have opened on a negative note. The rupee was trading at Rs 48.8 to the dollar at the time of writing.

Bank of Baroda (BOB) declared its results for the second quarter of financial year 2011-2012 (2QFY12). Its net interest income grew by 26% YoY in 2QFY12 (25% in 1HFY12), on the back of 24% YoY growth in advances. Despite the deteriorating economic environment and rising interest rates the bank was able to perform well. It retail credit rose by a relatively modest 10%, while credit to SMEs (small and medium enterprises) grew by over 28%. Agricultural credit grew by around 5%. The bank's net non performing assets (NPAs) moved up marginally from 0.38% in 1HFY11 to 0.47% in 1HFY12. Profit was up 14% YoY in 2QFY12 and 17% YoY in 1HFY12. Provisions on advances, investment depreciation and higher interest costs ate into profits. The bank's capital adequacy ratio stood at 12.7% at the end of 1HFY12. The stock closed 4.4% higher for the day.

Bharat Petroleum Corporation Limited (BPCL) announced the second quarter results for financial year 2011-2012 (2QFY12). Its topline registered a growth of 19.4% YoY during the quarter. It however reported a loss at the operating profit level leading to loss margins at 6.4% versus positive margins at 7.0% in the same quarter last year (2QFY11). BPCL also reported a loss at bottomline level, resulting in net loss margins at 7.6%, versus net profit margins at 6.0% in the same quarter last year (2QFY11). The throughput for the quarter came at 5.58 million metric tons (MMT) versus 5.6 MMT last year. Export sales volumes at 0.94 MMT registered an increase of 21% YoY during the quarter. The stock closed 2.6% lower for the day.