Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Oil & Gas unable to fuel the market
Fri, 16 Apr 11:30 am

In the last 2 hours of trade the Indian markets remained volatile as they crossed the dotted line and then returned back to the negative territory. Buying interest is seen in FMCG and banking while stocks in oil & gas, realty and power are witnessing massive sell off activity.

The BSE-Sensex is trading lower by 52 points while the NSE-Nifty is trading 19 points below the dotted line. The BSE-Midcap Index is down by 0.2% while the BSE-Smallcap index is trading marginally higher than yesterday's closing. The rupee is trading at 44.48 to the US dollar.

FMCG is the top gaining sector this morning with Godrej Consumer Products being the top gainer in the market. VST Industries declared its yearly results. The company’s sales for FY10 shot up by 24% YoY while the operating profit zoomed by 34% YoY. This increase was primarily due to fall in other expenditure as a result of foreign exchange gains. Lower staff costs as a percentage of sales also helped increase operating profits. However, higher tobacco prices continue to rule and capped the company's operating profit growth. The company, however, had a dismal show at the net profit level as extraordinary expenses in the form of VRS ensured that bottomline growth remained flat. However when adjusted for all extraordinary items and foreign currency gains the company's bottomline grew by 3.7% YoY.

Stocks in the auto sector are trading weak led by Amtek Auto and Apollo Tyres. According to a leading business daily, India's third largest two-wheeler major TVS Motor is betting big on the scooter segment. The company is aiming to increase its market share in the scooter segment from the present 22% to 30% by the end of FY11. It expects to grow the average sales in this segment to 150,000 units per month, leading to a 50% YoY growth in this segment in FY11.

It may be noted that the company recently un-veiled a new unisex scooter "Wego" which will be first launched in Maharashtra followed by other states within the next 3 months. It is priced at Rs 42,361 (ex-showroom). TVS Motor targets to sell 20,000 units of 'Wego' per month. We believe that success of new launches will further buoy the company's two-wheeler segment which grew at an industry beating rate of 42% YoY in 3QFY10.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Oil & Gas unable to fuel the market". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.