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

Indian share markets open weak
Fri, 3 Aug 09:30 am

Major Asian stock markets have opened the day on a weak note with stock markets in Japan (down 1.3%), Hong Kong (down 1%) and Taiwan (down 0.8%) leading the losses in the region. However, the markets in China (up 0.4%) are trading firm. The Indian share market indices have opened the day on a weak note. Stocks in the metal, auto and realty space are leading the pack of losers.

The Sensex today is down by around 121 points (0.7%), while the NSE-Nifty is down by around 46 points (0.9%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 0.6% and 0.3% respectively. The rupee is trading at Rs 56.08 to the US dollar.

Cement stocks have opened the day on a weak note with Heidelberg Cement, Prism Cement and Chettinad Cement leading the losses. South India based cement player Madras Cements has announced its financial results for the quarter ended June 2012 (1QFY13). Net sales for the quarter stood at Rs 9,892.8 m, higher by 29.5% YoY than the corresponding quarter of the previous financial year (1QFY12). The growth was driven by both healthy growth in volumes and better cement realisations. Operating margins contracted from 32% in 1QFY12 to 31% in 1QFY13 on account of significant increase in logistics expenses. Net profits for the quarter stood at Rs 1,230.1 m, witnessing a rise of 25.1% YoY. Net margins declined by 50 basis points (0.5%) from 12.9% in 1QFY12 to 12.4% in 1QFY13.

Food stocks have opened the day on a mixed note with Nestle and ITC Ltd trading in the red. However, Tata Global Beverages and GlaxoSmithKline Consumer Healthcare are trading firm. As per a leading financial leading, Swiss food major Nestle is offering aggressive discounts and incentives to retailers on its flagship product Maggi instant noodles. It is believed that Nestle is offering aggressive discounts in order to the guard its market share against rising competition from aggressive new entrants such as ITC's Sunfeast Yippee, GlaxoSmithKline's Horlicks Foodles and Hindustan Unilever's Knorr Soupy Noodles. Analysts opine that this is the first time in a decade that the company is offering such aggressive discounts. For close to three decades, Nestle's Maggi has dominated the instant noodles market in India. But in recent times, it has been losing market share to competitors such as ITC's Sunfeast Yippee. While two years ago, Nestle commanded 90% market share, the same has slipped down to 80%, as per Nielsen data. The size of the instant noodles market is estimated to be around Rs 13 bn.

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 "Indian share markets open weak". 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.