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

Banking and FMCG stocks move up
Fri, 13 Aug 11:30 am

After a muted start the Indian indices have moved firmly into the positive territory in early hours of trade. Other key Asian markets are all trading well in the green. Currently heavyweights in the Sensex are mainly trading positive with stocks from banking and FMCG space trading higher. However, stocks from IT and metals space are trading flat.

The BSE-Sensex is trading up by around 90 points, while the NSE-Nifty is up by about 32 points. Strong buying interest is being witnessed amongst the mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are both trading higher by 1.2%. The rupee is trading at 46.63 to the US dollar

Pharma stocks are mainly trading positive with Wockhardt and Bilcare leading the gains. Ranbaxy announced its 2QCY10 results. Revenues grew by 14% YoY during the quarter primarily led by strong sales from 'Valacyclovir' in the US and growth in other key geographies. Various cost rationalization measures along with strong revenues from 'Valacyclovir' led to a 16.4% improvement in operating margins. Profits however fell by 52% YoY due to absence of extraordinary income and forex losses of Rs 1.1 bn as against gains of Rs 1.9 bn in 2QCY09. The MD and CEO Atul Sobti stepped down from his post, with Arun Sawhney (President - Global Pharmaceutical Business) taking his place.

Oil & Gas stocks are trading strong with Cairn India and Reliance Industries leading the gains. As per a leading news daily, the top two players in the Indian airline space Kingfisher Airlines and Jet Airways collectively owe Rs 17.7 bn to the PSU oil companies for the four quarters ended June 2010. This works out to be 94% of what all private airlines in the country owe to the three oil PSU's namely IOC, HPCL and BPCL. Naresh Goyal owned Jet Airways has dues amounting to Rs 9.6 bn and Vijay Mallya's Kingfisher Airlines has to pay Rs 8.14 bn to the oil companies. This does not help the cash bleeding PSUs which were a part of the subsidy sharing mechanism until the petrol prices were freed recently. Although delay in payments do not add to the losses of the OMC's as interest is recovered on overdue payments it certainly worsens the working capital cycle. However, the OMCs have put the defaulting airlines on the cash and carry model as a measure to avoid delay in future payments.

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 "Banking and FMCG stocks move up". 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.