Indian stock markets plummet

Wed, 18 Jun 01:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   Closing   

After trading in a narrow range, the Indian stock markets plummeted in to negative territory on account sharp selling triggered by tension over the Iraq conflict. Barring four stocks led by Cipla and Dr. Reddy's, all BSE-30 Sensex stocks are trading in the red. Among the sectors, realty and power are leading the sell-off.

The BSE-Sensex is trading down by 290 points and the NSE-Nifty is trading down by 82 points. The BSE Mid Cap index is trading down 0.9% and the BSE Small Cap index is trading down 0.85% today. The rupee is trading at 60.12 to the US dollar.

Most of steel stocks are trading weak today led by Tayo Rolls and Jindal Steel, while SAIL is among the few stocks trading firm today. As per a leading business daily, Tata Steel is planning to raise funds of about Rs 140 bn through issuance of privately placed debt in the domestic and international markets. The company will take shareholders approval for the issuance of debt securities that will be converted to equity. With respect to borrowings, it will seek shareholder's approval for creation of charges on its movable and immovable properties. The company will also seek nod to increase its borrowing limit from Rs 500 bn to Rs 700 bn or the sum of its paid-up capital and free reserves, whichever is higher. The borrowings are most likely for refinancing of the company's existing debt. Tata Steel is also raising its standalone debt limit as it has earmarked capex of Rs 160 - 170 bn for its Kalinganagar plant in FY15.

Most of the consumer product stocks are trading in the green with Dabur and Colgate being among major gainers. As per a leading financial daily, Godrej Consumer Products Ltd (GCPL) has launched five new personal care products such as liquid handwash, sanitizers and mosquito repellants under the Protekt range. These personal care products will be sold in the modern retail outlets initially and later taken into the retail system across the country. The company aims to acquire 10% market share in the segment that is expected to double in size within three years. Despite slowdown in home and personal care demand in FY14, GCPL has been clocking growth ahead of the market in its core categories. Historically, the company's home insecticides and personal products business have grown 1.6-1.7 times the overall category but in FY14 the business has grown by three times, thanks to premium and innovative product offerings. Margins during the year have been hit slightly due to higher brand investments with around 75% of them targeted at new launches. Going ahead, the company expects to drive growth and better margins from cost savings and premiumization. GCPL stock is currently trading up by 0.2%.