Indian indices languished in the red throughout today's trading session as persistent selling across index heavyweights took its toll. While the BSE Sensex closed lower by around 216 points (down 1%), the NSE Nifty lost around 69 points (down 1%). The BSE Midcap and the BSE Smallcap also dipped into the red with losses of around 0.3% each. While selling was seen across sectors, consumer durables and metal stocks managed to buck the trend.
As regards global markets, Asian indices closed mixed today while European indices have also opened on a mixed note. The rupee was trading at Rs 44.55 to the dollar at the time of writing.
Glenmark announced its 2QFY11 results a while ago. The company reported a healthy 23% YoY growth in revenues largely due to strong growth reported by both its generics (up 27% YoY) and speciality (up 19% YoY) businesses. Growth in the generics business was led by the US and Europe. Glenmark had a successful series of new product launches during the quarter. It was further granted final approvals by the US FDA for 8 new products, the market size for which has been pegged at US$ 215 m. Growth in the speciality business was largely led by Latin America (up 23% YoY) and India (up 22% YoY). Operating margins, however, fell by 2.8% to 25.2% during the quarter due to higher raw material costs (as percentage of sales). Thus, operating profits grew by 11% YoY. Bottomline growth at 38% YoY was stronger than the growth in operating profits due to reduction in interest costs and depreciation charges. The stock closed 3% higher today.
Hotel stocks closed in the red today with the key losers being Indian Hotels, Hotel Leelaventure and Taj GVK. Indian Hotels also announced its 2QFY11 results. Net sales for 2QFY11 increased by 6.9% YoY on the back of higher occupancy. Operating (EBITBA) margins fell by 5.4% during the quarter. This was due to higher raw material costs, staff costs and other costs (all as a percentage of sales). Net profits slipped into the red this quarter. This was due to fall in operating income, lower other income and an extraordinary loss (profit in the corresponding quarter last year) recorded during the quarter.