India Markets Wednesday Wrap-Up: Metal And Power Stocks Spoil The Show

by: Equitymaster

Although indices in the share market in India did well to recoup some of the losses during the closing stages, they still ended the day significantly in the red. While BSE-Sensex edged lower by around 70 points (down 0.4%), losses on the NSE-Nifty came in the region of around 20 points. Mid Cap and Small Cap indices also performed poorly, ending lower by the same margin of 0.8% each. More than two stocks decline for every one that closed the day in the positive on the Sensex.

While most Asian indices closed lower today, Europe is trading in the positive currently. The rupee was poised at Rs 56.2 to the dollar at the time of writing.

Today's fall was led mostly by heavyweights like Hindustan Uniliver, Reliance Industries and Bharti Airtel. While the fall in latter two is not particularly known, HUL could be down on account of profit booking , especially after yesterday's phenomenal rise. ITC, the other consumer products major however closed higher by close to 2%.

Power Grid, India's largest power transmission company has reported good numbers for the quarter ended June 2012. The company managed to grow its bottom line by 23% YoY on the back of a slightly higher growth in top line. Had it not been for the steep fall in other income as well as strong jump in interest expense, the bottom line performance would have looked even better. The transmission income expanded by 32% YoY. Important to add that the company has awarded contracts worth Rs 60 bn during the quarter, a huge increase over the Rs 3.3 bn awarded in the same period last year. The stock closed virtually flat on the bourses today.

Hero Motocorp, India's largest two-wheeler company is planning to set up an integrated state-of-the-art R&D centre in the state of Rajasthan. Spread over 250 acres, it will be the largest 2-wheeler R&D centre in the country. It should be noted that the company severed its ties with its JV partner Honda Motors about a year and a half back and since most of the technology was sourced from Honda, the need to set up R&D facility of its own was created. Thus this current announcement seems a big step in that direction. The stock of the company closed virtually flat on the bourses today.