Indian stock market indices continue to bleed after a weak opening. Realty stocks lead the downfall followed by engineering stocks. IT sector stocks and Oil and Gas sector stocks are the only two indices trading in the green.
is down by 161 points while NSE-Nifty
is trading down by 51 points at the moment. BSE-Midcap and BSE-Small cap indices are down by 0.86% and 0.98% respectively. The rupee is trading at 44.33 to the US dollar.
Banking stocks are also in the red. Axis Bank and Yes Bank are the biggest losers. All the stocks in the index are in the red. Meanwhile Corporation Bank declared its results for the first quarter of the financial year 2011-2012 (1QFY12). The bank has reported 50% YoY and 5% YoY growth in interest income and net profits respectively. Net interest income grew by 8% YoY on back of strong advances which clocked 22% YoY growth during the quarter. The growth in advances was because of strong demand in large corporate and SME segment. The bank however saw a 9% decrease in its loan book in the three month period from April-June 2011. Net interest margin (NIM) shrinks to 2.1% from 2.6% in 1QFY11. Capital adequacy ratio (CAR) stood at healthy 14.05% as per Basel II norms, with 8.6% Tier 1 ratio.
Automobile stocks are also down led by Tata Motors and Bajaj Auto. Maruti Suzuki is the only stock in the green. India's auto major Tata Motors is planning of setting up an overseas assembly operations for its small car Nano. There are many important markets for the Nano, like the SAARC countries, the Asean region and Latin America. Earlier this year, the car major started exporting components required to manufacture Nano to Sri Lanka and Nepal. They are planning to rejig their dealerships and open product category-specific outlets to increase sales volumes of passenger vehicles. The company at present has 250 full-range dealerships and plans to add 300-odd Nano dealerships, mostly in tier 3 and 4 cities, as also 100 utility vehicles dealerships by the end of this year. Tata passenger vehicles sales in the domestic market fell by 38.30% in July to 17,192 units from 27,865 units in the same month last year. Sales of Nano were down 64% at 3,260 units in July 2011. The company hopes that this strategic move will help them increase sales of its Nano car.