Market indices remain bullish

Fri, 27 Jan 01:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   Closing   

Despite paring some early gains in the last two trading hours, Indian stock markets continued to hover well above the dotted line. Majority of the sectoral indices are trading in the positive with consumer durables, Oil and gas and metal stocks leading the pack of gainers. Realty and banking stocks are the biggest losers.

The BSE-Sensex is trading up 88 points and NSE-Nifty is trading up 27 points. The BSE Mid cap and BSE Small cap indices are up by 0.5% and 1.09% respectively. The rupee is trading at 49.5 to the US dollar.

Most of the automobile stocks are trading in the green with Tata Motors (Telco) trading the strongest and Maruti Suzuki trading the weakest. As per a leading financial daily, depreciating rupee has come to the rescue of domestic car-makers struggling with falling local demand and high interest rates. Reportedly, companies such as Maruti Suzuki, Hyundai and Nissan have their order-books full for the next two months as favourable currency movements have increased the bargaining power of Indian car exporters. According to Maruti, boosted by weak rupee, its export models like A-Star, Alto, WagonR & Estilo are sold-out till March. The company plans to start exporting cars in completely knocked down (CKD) format. Hyundai has witnessed improved export demand for i10 and Santro hatchbacks as well as Accent sedan. The company has also started exporting Eon. Nissan has been exporting its compact car Micra from the Chennai plant.

Majority of the FMCG stocks are trading positive with Camlin and Godrej Consumer trading the strongest. According to a leading financial daily, consumer goods companies such as Hindustan Unilever (HUL), L'Oreal, Pepsico and Henkel are launching products in large stock keeping units (SKUs) to target the value-conscious consumer. HUL recently launched its popular RIN detergent in the 8-kg pack in the modern retail chains. L'Oreal, which launched its Garnier Fructis Shampoo in 700-ml packs, wants to launch its other shampoos in the same pack size. Jyothy Laboratories owned Henkel brand retails 2-litre Pril dishwash liquid and 30-coil Maxo mosquito repellant in modern trade. Similarly Pepsico has launched 2.5 litre beverage packs and 1 kg 'Lehar Namkeen' packs in modern retail. The emergence of the modern retail format has paved way for the success of large SKUs that are beneficial to both the consumer and the manufacturer. While consumers benefit from cost savings per unit of large family-packs, manufacturers derive higher sale volumes and increased brand loyalty.