Indian Markets Tuesday Wrap-Up: India Slips, Asia Tumbles

Persistent selling activity led the markets to lose further ground during the final hour of trade. However, the indices did stage a minor comeback during the fag end. The BSE-Sensex ended the day on a weak note, down by around 320 points, while the NSE-Nifty closed lower by about 130 points. Stocks from the mid-cap and small-cap space ended the day on a lower note as well, recording losses of 3.2% and 2.8% respectively. Stocks from the realty, capital goods and power sectors led the pack of losers today, while the IT space managed to garner investor interests.

Other Asian markets ended the day on a weak note. The European indices are currently trading lower as well. Rupee was trading at 47.82 against the US dollar at the time of writing.

Pharma stocks ended the day on a weak note led by Ranbaxy, Biocon and Wockhardt. Dishman Pharma announced its results yesterday. The company’s revenues grew by 33% YoY during the year. This growth was led by both its business segments - CRAMS and Marketable molecules (MM). Further, its operating margins expanded by 5.7% on account of lower raw material prices (as percentage of sales). During FY09, the company’s EBIDTA margin stood at 24.9%. Profitability wise, Dishman recorded a 21% YoY growth during the year. It may be noted that during FY08, the company had an extraordinary income gain of Rs 379 m. On excluding the same, growth in net profits stood at a strong 75% YoY during FY09.

Two-wheeler stocks ended the day on a mixed note led by Bajaj Auto and TVS Motors. However, Hero Honda did manage to close on a firm note. As per a leading business daily, Bajaj Auto has planned to take full benefit of its alliance with Austrian power bike maker, KTM Power Sports, which it had acquired about two and half years back. The company plans to jointly manufacture complex and power engine bikes. In addition, both the companies will utilise their distribution network to market the bikes in India as well as abroad. It may be noted that Bajaj Auto is aiming to become the leader in the premium bike segment in India. It currently has only one model in the 200 cc plus segment while KTM has several offerings in the premium end bike segment.

Virgin Atlantic, a 51:49 partnership between Richard Branson and Singapore Airlines (SPAAF.PQ) posted its results recently. The company’s profits for the year almost doubled as compared to the previous year. The management attributed rising demand for premium travel to be the reason for this strong performance. As per the company, pre-tax profits were higher by 97% YoY to 68 m pounds for the year ending February as against 35 m pounds in the previous year. It is an outstanding performance considering companies such as British Airways (BAIRY.PK) have recorded huge annual losses.