Indian stock market indices slipped further over the last two hours of trade on the back of heavy selling activity across index heavyweights. Realty and Metal stocks witnessed the maximum selling pressure while select FMCG stocks were in favour.
The BSE-Sensex is down by 267 points, while the NSE-Nifty is down by 88 points. BSE Mid Cap index and BSE Small Cap index Small Cap Index are down by 1.0% and 0.6% respectively. The rupee is trading at 49.23 to the US dollar.
Energy sector are trading in the negative led by Essar Oil and Mangalore Refinery and Petrochemicals Limited (MRPL) leading the losses. Hindustan Petroleum (HPCL) has announced results for second quarter of financial year 2011-12 (2QFY12). The company has reported a growth of 21% YoY in the net sales and a net loss of Rs 33.6 bn for the quarter versus a net profit of Rs 20.9 bn in the year ago period. The performance at the bottomline level has suffered due to higher under recoveries and adverse impact of rupee sliding against dollar as it imports a significant share of its crude oil requirement. The company reported average gross refining margins (GRMs) at US$ 1.52 per barrel versus US$ 3.21 per barrel last year. The crude thruput for the quarter came at 4.19 MMT (million metric tonnes) versus 3.04 MMT in 2QFY11. The company reported market sales (including exports) at 6.94 MMT for the quarter versus 6.03 MMT during the year ago period.
Castrol India Ltd. has announced its results for the third quarter of financial year 2011 (3QCY11 results). The company has reported a 4.8% year on year (YoY) increase in the topline. The operating profits declined by 21.7% YoY during the quarter. The operating margins also contracted to 19.7% from 26.4% (YoY).The net profits of the company are down 18.6% YoY with margins at 14.1%, versus 4.1% last year (YoY). The margins were down due to high costs of base oil and additives. The raw material expenses (base oil and additives costs) increased to 58.6% from 52.4% (both as a % of sales) during the quarter.