Strong selling in banking and IT heavyweights took a toll on the index levels during the closing stages and as a consequence, the benchmark indices closed significantly in the red today. The BSE-Sensex lost in the region of 120 points while NSE-Nifty edged lower by around 30 points. BSE Midcap and small cap indices too came under selling pressure with the midcap index losing as much as Sensex in percentage terms whereas the small cap index lost slightly less. On the Sensex, two stocks declined for every one that closed the day in the positive.
Most Asian indices also closed the day in the negative while Europe too has opened on a negative note. The rupee was trading at Rs 45 to the dollar at the time of writing.
Castrol India closed 1% lower today. This despite a decent set of numbers announced by the company in its full year results. The company managed to grow its topline by 18% for the full year on a YoY basis while its operating profits grew by 25%, thanks to an expansion in operating margins. Bottomline growth at 29% YoY came in even stronger what with growth in other income and lower tax outgo. While the performance has been impressive, it remains to be seen whether the company is able to sustain its strong margins going forward as its key raw material, a crude oil derivative, gets costlier by the day.
Another company but this time from the engineering sector also announced its full year results. The company in question is ABB which surged around 8% on the bourses today. Prima facie though, the results do not look that impressive. Despite revenues growing by 9% YoY, bottomline during the quarter has taken a huge hit and stood at a mere Rs 68 m as compared to Rs 1 bn during the same quarter last year. The company did say that it suffered a loss of around Rs 217 m on its forex contracts as opposed to gain of Rs 10 m in the corresponding previous quarter. Profit for the full year has also suffered a significant fall despite a growth in topline.