The major Asian stock markets have opened the day on a mixed note with Japan (up 1.3%) and Singapore (up 0.2%) leading the gains. However, the stock markets in Taiwan (down 0.4%). China (down 0.2%) and Indonesia (down 0.7%) have opened in the red. The Indian stock markets have opened the day on a negative note. Barring healthcare and software, all sectoral indices have opened in the red with stocks in the capital goods and banking space leading the losses.
The Sensex today is down by around 120 points (0.6%), while the NSE-Nifty is down by around 33 points (0.5%). The midcap stocks have opened on a negative note as well with the BSE Mid Cap index down by around 0.1%. However, the smallcap stocks were witnessing gains with the BSE Small Cap index up by around 0.1%. The rupee is trading at 63.21 to the US Dollar.
Auto stocks have opened the day mainly in the red with Ashok Leyland Ltd and Hero Motocorp Ltd leading the losses. Tata Motors Ltd has announced results for the second quarter of the financial year 2013-14 (2QFY14). On a consolidated basis, the company has reported a 31% year on year (YoY) growth in the revenues during the quarter. The net profits for the quarter surged by 71% YoY on account of a strong performance of the company's Jaguar Land Rover (JLR) unit. However, the company's Indian business was hit during the quarter due to the overall slowdown in the economy. The sales volumes of commercial and passenger vehicles in India, including exports, declined by 32.5 % YoY. However, the management stated that the weak operating environment in India was more than offset by increase in wholesale volumes, richer product and market mix at JLR where wholesale and retail volumes grew by 31.6 % YoY and 21.1 % YoY respectively. Going forward, the company plans to launch slew of new vehicles including a new hatchback and a sub 4-metre sedan in 2014.
Engineering stocks have opened the day on a mixed note with Crompton Greaves Ltd and Elecon Engineering Ltd leading the losses. However, Elgi Equipments and Ingersoll Rand Ltd were leading the gains. Crompton Greaves Ltd has announced results for the second quarter of the financial year 2013-14 (2QFY14). The consolidated revenues for the quarter were up by 9.6% on a year on year (YoY) basis. The growth was supported by the better execution in the international business. However, the international segment that accounts for more than 40% of the sales continues to lag on profitability. During the quarter, the raw material costs as a percentage of sales declined by around 1.5 % YoY. As such, the operating profits for the quarter were up by 18% YoY. The net profits for the quarter grew by around 38.9% YoY. During the quarter, the company was affected by increase in the tax expenses.