After opening in red Indian markets have been trading flat in the last two hours of trading session. Banking and capital goods indices are leading the losses; while healthcare and Consumer Durables are witnessing some buying interest.
Energy stocks are trading mixed today. Gujarat Gas and Reliance Industries are leading the gainers. Gas Authority Of India Ltd. (GAIL) and Jindal Drill are leading the losers. Hindustan Petroleum Corporation Limited (HPCL) has declared its results for the second quarter of the financial year 2013-2013 (2QFY14). Sales for the quarter rose by 8% YoY. Petrol sales increased 7.2 % YoY, while diesel sales were up 4.4 % YoY. The market sales of its petroleum products increased to 6.9 m tonnes growing by 3.7 % YoY. The combined gross refining margin (GRM) for the July-September quarter stood at US$3.8 per barrel as compared to US$4.3 per barrel in the corresponding quarter last year. The company had an under-recovery loss of Rs 82.3 bn on sensitive petroleum products like petrol, diesel and kerosene. Out of this, the government support in form of cash subsidy was Rs 41.3 bn and discount/contribution from upstream oil firms such as Oil and Natural Gas Corporation Ltd. (ONGC) was about Rs 39.1 bn. Therefore, the company reported a net under-recovery loss of Rs 1.9bn. The company also suffered a forex loss of Rs 1.5 bn. These factors led to 86.3% YoY decline in net profits to Rs 3.2 bn. HPCL is trading flat today.
Information technology (IT) stocks are trading mixed today. Wipro and HCL Tech are among the stocks leading the gainers while Tech Mahindra and Tata Consultancy Services (TCS) are among the stocks leading the losers. India's second largest software firm Infosys has announced a joint technology marketing agreement with Arrow Electronics. Arrow Electronics provides computer components and enterprise IT services to US customers and has been a client of Infosys BPO for over 10 years. As per the agreement, Infosys and Arrow will jointly provide end-to-end IT asset management services. The services provided would enable clients to derive greater value from their IT assets, both software and hardware, at the end of their product life cycles. The industry verticals that would be serviced in this partnership would be manufacturing, high-tech, telecom, banking, retail and consumer packaged goods. Infosys is trading up 0.3% today.