Indices languish near dotted line
As the indices in Indian equity markets shed their gains after a positive start, only stocks from defensive sectors like pharma and FMCG managed to sustain gains. Stocks from energy, auto and IT sectors topped the list of losers by the end of the session. There was no respite for the stocks from BSE Midcap and BSE Smallcap indices as well. While the Sensex today closed higher by around 2 points, the Nifty today closed lower by 4 points.
As regards global markets, Asian indices closed higher today while European indices have also opened on a positive note. The rupee was trading at Rs 55.15 to the dollar at the time of writing.
Axis Bank declared the results for the first quarter of financial year 2012-13 (1QFY13) today. The bank has reported 26% YoY growth in net interest income and 22% YoY growth in net profits for the full year period. The net interest income grew by 26% YoY during 1QFY13 on the back of 30% YoY growth in advances. Net interest margins (NIM) also improved marginally to 3.4% in 1QFY13 from 3.3% in 1QFY12 due to fall in cost of funds over the past two quarters. The average NIMs for the bank over the past 5 fiscals have been 3.5%. The growth in net profits was despite rise in provisions and slower growth in fess (9% YoY). Net NPAs stable at 0.3% of advances at the end of 1QFY13, gross NPAs at 1.1% of advances. The bank's capital adequacy ratio (CAR) on firmer footing at 13.0% at the end of June 2012, Tier 1 capital at 9.5%.
Meanwhile, as per a business daily, Grasim Industries, the flagship company of Aditya Birla Group company, is planning to set up a US$ 500 m plant in Turkey for producing viscose staple fibre (VSF), a raw material used for making apparels and home textiles. It is looking for requisite approvals for this project. The new facility along with a captive power plant and Sulphuric Acid plant will come up in two phases. Its current VSF manufacturing capacity is 7.5 lakh tonne per annum and it aims to raise it to 1.1 million tonnes by 2015. The company expects to commission plant in Turkey by early 2015. This capacity will cater primarily to the textile industries in Turkey.
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