Asian stock markets have opened the day on a firm note. Stock market in Hong Kong (up 2.3%), South Korea (up 2.0%), Singapore (up 1.7%), China (up 1.6%), Japan (up 1.1%) and Indonesia (up 1.1%) is in the green. The Indian stock market
have opened the day on a firm note. Stocks in the IT and Realty space are leading the gains.
The BSE-Sensex is trading up by 170 points (1%) and the NSE-Nifty
is up by around 53 points (1.1%). BSE Midcap and BSE Small cap stocks are trading in the green, with the BSE Mid Cap and BSE Small Cap
indices up by 0.6% and 0.5% respectively. The rupee is trading at 49.99 to the US dollar.
Auto stocks have opened the day on a firm note with Maruti and Mahindra & Mahindra in the green. There is a possibility that Mahindra and Ssangyong car models will be kept for sale under the same roof for various international markets. Ssangyong is a Korean carmaker acquired by Mahindra. The strategy is to boost both the brands and help expand their footprints in markets like Europe, Africa, Latin America and South-East Asia. The idea of having common dealerships follows the target of increasing the volumes and revenues for Mahindra. The target set by the company is to increase the global revenues by four times to 20% from currently 5% by 2016. The company said that the joint dealerships will take a few months to start, however there will be a clear demarcation of the two brands.
Pharma stocks have opened the day on a firm note with Sun Pharma and Cipla leading the gains while Pfizer and Wyeth is in the red. Glenmark Pharma has declared its results for the second quarter of 2011-12 (2QFY12). The company has reported a 45.8% YoY growth in net sales and 35.2% YoY de-growth in net profits. Net sales grew by 45.8% YoY led by growth in specialty business which includes revenue from out-licensing revenues. The speciality business (contributes ~60% to sales) grew by 67.3% on back of out-licensing revenues and strong growth from Latin America and ROW markets. Operating margins (EBITDA) rise 190 bps (1.9%) to 21.4% with decrease in raw material and employee costs. However, other expenditure increased substantially. Net profits de-grow by 35.2% YoY. Growth in net profits was lower than that of sales due to exceptional losses incurred.