Asian stock markets have opened yet another the day on a weak note. Stock markets in Indonesia (down 1.5%), South Korea (down 1.3%), Hong Kong (down 1.2%) and Singapore (down 0.8%) are in the red. The Indian stock market
have opened the day on a weak note as well. Stocks in the metal and energy space are leading the losses.
is trading down by 134 points (0.8%) and the NSE-Nifty
is down by around 36 points (0.8%). Mid cap and small cap stocks are trading in the red, with the BSE Mid Cap and BSE Small Cap indices down by 0.2% and 0.1% respectively. The rupee is trading at 52.25 to the US dollar.
Pharma Stocks have opened the day on a weak note with Sun Pharma and Divi Lab in the red. Wockhardt has announced its second quarter results for 2011-12 (2QFY12). Net sales grew by 18.1% YoY led by strong operating performance from the US and domestic business. US business grew by 84% YoY led by growth from new launches in the last quarter. Wockhardt received 4 ANDA (Abbreviated New Drug Application) approvals from the US FDA. Operating margins (EBITDA) increase 5.7% to 29.1% due to a fall in raw material and staff costs due to closure of major operations in France. The company reported net profits of Rs 1,275 m as against a net loss of Rs 975 m in 2QFY11. The poor performance in 2QFY11 was due to the exceptional loss. On excluding the exceptional items and forex losses, net profits increase by 90%.
Energy stocks have opened the day on a weak note with Reliance Industries and Oil & Natural Gas Corporation (ONGC) trading in the red. State-owned explorer ONGC is planning to set up a gas processing plant near Dahanu in Maharashtra. As per the plan, it seeks to process gas produced from its marginal fields on the west coast at Dahanu unit. The plant is estimated to require an investment of about US$ 3 bn. It aims to achieve a peak capacity utilisation rate of 8 mscmpd (million standard cubic meters per day). ONGC is also looking expected to tie up with global companies to enhance its domestic deep-water hydrocarbons hunt. During the second quarter of the financial year 2011-12 (2QFY12), ONGC had reported 24.4% year-on-year (YoY) increase in topline and 60.4% YoY increase in net profits.