Indian stock markets open in green

Tue, 8 Nov 09:30 am

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Most Asian stock markets have opened the day on a firm note with stock markets in Hong Kong (up 0.7%), Indonesia (up 0.6%) and Malaysia (up 0.6%) leading the gains. However, markets in Japan (down 0.1%) are marginally down. The Indian stock market have also opened the day on a firm note. Stocks in the FMCG and oil and gas space are leading the gains. However, technology stocks are trading weak.

The BSE-Sensex is trading higher by 59 points (0.3%), while the NSE-Nifty is up by around 16 points (0.3%). Mid and small cap stocks are also trading in the green, with the BSE Mid Cap and BSE Small Cap indices up by 0.5% each. The rupee is trading at 49.23 to the US dollar.

Cement stocks have opened the day on a mixed note with Madras Cements, UltraTech Cement and Birla Corporation leading the gains. However, Mangalam Cement and Shree Cement are trading in the red. Madras Cements has declared its results for the second quarter of financial year 2011-12 (2QFY12). The south-based cement company has reported sales revenues of Rs 8.2 bn for the quarter ended September 2011, a 28% YoY growth from the corresponding quarter of the preceding financial year. The strong growth was on the back of a whopping 49% year-on-year (YoY) rise in cement realisations, despite a 9% YoY decline in sales volume. Operating margins almost doubled during the quarter from 16.7% in 2QFY11 to 32.6% in 2QFY12, boosting operating profit by almost 150% YoY to Rs 2.7 bn. At the bottomline, net profits surged by 256% YoY. Net margins rose from 4.8% in 2QFY11 to 13.5% in 2QFY12. During the first half of FY12, sales and net profits increased by 18% YoY and 102% YoY respectively.

Pharma stocks have opened the day on a mixed note with Orchid Chemicals and Aurobindo Pharma trading in the red, while Cadila Healthcare and Piramal Healthcare are trading firm. Piramal Healthcare has announced the second quarter results of the financial year 2011-2012 (2QFY12). The company reported a decline of 35.6% YoY in sales due to the sale of healthcare business in September 2010 and subsequent sale of the diagnostic business. However, comparing the remaining business, the sales grew by 32.1% YoY. This growth was led by over-the-counter (OTC) and critical care business. The overall operating loss stood at Rs 233 m against a loss of Rs 127 m in 2QFY11. The net profits fell to Rs 524 m in 2QFY12 against Rs 124.9 bn in the comparable quarter last year as the latter includes exceptional profits from the sale of the domestic formulation business.