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India sole loser in Asian mkts
Wed, 20 Jul Closing

Barring some stocks in the FMCG and realty sectors, few others found investor appetite in the Indian markets today. As a result, despite a firm start, the benchmark indices in Indian stock market succumbed to selling pressure by the end of the day's trade. Mid and smallcap stocks too ended lower.

The BSE-Sensex and NSE-Nifty closed 151 points (down 0.8%) and 47 points below yesterday's closing respectively. The BSE Midcap index was down by 0.9% while BSE Small cap index ended lower by 0.4%. The rupee was trading at 44.48 to the US dollar.

ING Vysya Bank reported the financials for the first quarter of financial year 2012. The bank's profit for the quarter grew by 36% YoY backed by 42% YoY growth in revenues. Earlier in June, the bank raised Rs 5 bn through qualified institutional placement (QIP) to augment its capital adequacy ratio and fund future growth. However, the bank continues to have amongst the highest proportion of operating costs to income ratio in the banking sector. Even after some cost control measures, the bank's cost to income ratio is well above 50%. This was much higher than the average of the largest PSU and private banks. The stock closed 3% lower in today's trade.

Gas Authority of India (GAIL), the country's largest gas transmission and marketing company is likely to acquire 50% stake in Andhra Pradesh Gas Distribution Corporation (APGDC). This MoU is expected to be signed 2QFY12 itself. The total paid up capital of APGDC is Rs 10 crore and there may be some premium also for the stake. According to the Petroleum & Natural Gas Regulatory Board rules, the companies which are bidding for the city's gas distribution network contracts should have experience of laying at least 300 km of gas network or should have three engineers on payrolls who participated in creation of similar network. If the move is successful, APGIC which was set up with an intention to create gas transportation infrastructure, will be eligible to participate in the bids for creating gas distribution networks in the country.

GAIL has already entered into tie-ups with state entities in Karnataka and Kerala for city gas distribution and is said to be in talks with entities in various states, including Rajasthan, Maharashtra and Tamil Nadu. The stock of GAIL ended with a status quo today.

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