Indian markets slip lower

Thu, 31 Jul 01:30 pm

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Indian stock markets continued to trade on a volatile note during the previous two hours of trade led by bouts of buying and selling activity among the index heavyweights. However, mid and small capitalization stocks are trading on a higher note. Among the large caps, the stocks from energy and metals sectors are leading the pack of gainers, whereas consumer durables and IT are trailing lower.

The BSE-Sensex is trading down 51 points and the NSE-Nifty is trading down 16 points. Whereas, the BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.5% today. The rupee is trading at 60.24 to the US dollar.

Aluminium stocks are trading firm today. NALCO is trading up by 0.8%, Hindalco is trading on a flat note. As per a leading business daily, NALCO has cleared one of its hurdles to kick start its much delayed coal mining project in Odisha. In the latest development, the state government has handed over the land parcel meant for rehabilitation and resettlement colony to NALCO. The company was allocated the mining block in 2004 to meet coal requirement for its captive power plant. However, there had been numerous bottlenecks. It failed to start operations as locals protested over the price of land acquisition and changes in the mining policy and clearances from center and state government. The company has stuck to its target of opening the mine by December 2014 although it is yet to receive forests and other clearances from the centre. The cost of energy for producing aluminium has gone up; as a result aluminium producers seek captive power supply with fuel resource.

Most of the food stocks are trading in the green led by Tata Coffee and Tata Global Beverages. As per a leading financial daily, Tata Global Beverages (TGBV) and Pepsico joint venture NourishCo will launch sparkling water variant of its brand Himalayan next month. This is the first extension in the Himalayan brand after it was acquired in 2007 from Mount Everest Mineral Water Company. The equal joint-venture with Pepsico was set up by TGBV in 2010 to market products on the health and wellness platform. Apart from Himalayan, the joint venture has fortified water product, Tata Water Plus and glucose drink, Tata Gluco Plus. The launch of Sparkling Himalyan is expected to provide TGBV access to the premium end of the bottled water market valued at Rs 80 bn, largely dominated by imported brands such as Nestle's Perrier and Italian brand San Pellegrino. Reportedly, premium bottled water accounts for only 5-8% of the overall bottled water market. The Sparkling Himlayan brand will be competitively priced at Rs 90 per litre as compared to imported brands costing around Rs 200-300 for 330 ml. TGBV's Himalayan Natural Mineral Water is positioned at the mid-end of the bottled water market and is priced at Rs 50 a litre. TGBV will be utilizing Pepsico's distribution network to push Sparkling Himalayan in both modern and traditional trade channels. TGBV stock is currently trading up by 1%.