Indian stock markets remain buoyant
After a strong opening, Indian stock markets continued to pare initial gains in the last two trading hours. But the indices remained well above the dotted line. Barring FMCG, all the sectoral indices are trading positive. Auto, consumer durables and metal stocks are the biggest gainers.
The BSE-Sensex is trading up 85 points and NSE-Nifty is trading up 28 points. Both BSE Mid Cap index and BSE Small Cap indices are up by 0.8% each. The rupee is trading at 51.6 to the US dollar.
Most of the FMCG stocks are trading strong with Marico and Godrej Consumer being the biggest gainers. As per a leading financial daily, Rohit Surfactants, which sells the popular mass-detergent Ghari, is planning to enter the higher margin mid-detergent segment. The company will launch its new brand, Uni Wash, in the next 2-3 months, reportedly at the same price level as Hindustan Unilever’s Rin and Procter & Gamble’s Tide, both being aggressive competitors in this category. Rohit Surfactants has been on a growth spree, adding 15 manufacturing units in the past six years and expanding reach to 10 new states over the last three years. The company feels that it has a solid platform which can be leveraged for the new brand to push it. The detergent industry, which is already battling with raw material inflation, is likely to see competition rising with the entry of a new brand. Hindustan Unilever stock is down 0.13%.
Majority of the Indian pharma stocks are trading positive with Glenmark Pharma and Natco Pharma trading the strongest. As per a leading financial daily, the US Supreme Court has given a favourable ruling to Sun Pharmaceuticals’ subsidiary Caraco Pharmaceuticals in its patent litigation case against Novo Nordisk. The ruling will enable Caraco to launch generic version of diabetes drug, Prandin, in the US market. The company is likely to launch the drug by FY13. Sun Pharma stock is up 1.7%.
Copyright © Equitymaster Agora Research Private Limited