India Markets Friday Wrap-Up: Markets Close The Week 2% Lower

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Includes: EPI, IFN, IIF, INDY, INR, PIN, SCIF, SCIN, TTM
by: Equitymaster

The Indian stock markets started of the day on a positive note with TCS providing some relief to the markets, post Infosys' disappointing show yesterday. The indices traded well above the dotted line for a bulk of today's session. However, in the final hour of trade, they trended lower and finally closed in the red. The market breadth was relatively even with 1.1 as many declines as advances. While the BSE-Sensex closed lower by around 19 points (down 0.1%), the NSE-Nifty closed lower by around 8 points (down 0.15%). The smaller indices also had a negative day on the bourses. The BSE Mid Cap index and the BSE Small Cap closed 0.2% and 0.1% lower respectively. Most sectoral indices saw declines today with the exception of FMCG and oil and gas stocks. Consumer durables and realty were the top losers.

As regards global markets, Asian indices had a mixed outing today. European indices opened the day in the green. The rupee was trading at Rs 55.36 to the dollar at the time of writing.

Jaguar Land Rover, a subsidiary of Tata Motors (NYSE:TTM) plans to launch a number of fuel-efficient sports cars in the next two years, according to group Chairman Ratan Tata. The company has undertaken its most ambitious product development programme in its history and plans to launch several new sports sedans and sports cars in the next two years in order to provide dealers with a more competitive and wider product range. However it is not clear as to how many new models will be launched or how many will be under each of the two brands - Jaguar and Land Rover. JLR had earlier announced to roll out 40 new products in the next 4-5 years. The company is currently considering setting up a new manufacturing facility in China to meet market demand for the two luxury brands in the region. The company is also currently investing 355 m pounds in an engine plant in the UK. It also plans to set up an engine manufacturing facility in India.

HDFC Bank declared the results for the first quarter of financial year 2012-13 (FY12). The bank has reported 37% YoY growth in interest income and 32% YoY growth in net profits for the quarter. Net interest income grew by 22% YoY in 1QFY13 on the back of 22% YoY growth in advances. The bank's net interest margins (NIMs) came in marginally higher at 4.3% at the end of 1QFY13 from 4.2% in 1QFY12 and 4QFY12 (CASA at 46% of total deposits). Other income also grew by a healthy 37% YoY, with fees and commissions growing in excess of 24% YoY. However, cost to income ratio came in higher at 49.2% in 1QFY13 against 48.3% in 1QFY12. There seemed some pressure on asset quality as the net NPA to advances remained stable at 0.2% of advances in 1QFY13. Provision coverage ratio was at 81% at the end of June 2012. The bank also has enough capital headroom as capital adequacy ratio was comfortable at 15.5% (Tier I CAR at 10.9%) at the end of 1QFY13.