Indian markets open weak

Mon, 31 Aug 09:30 am

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The major Asian stock markets have opened the day in red. Stock markets in China and Japan are down 2.7% and 1.9% respectively and are among the top losers in the pack. The major stock indices in the European and US markets ended their previous session in green. The rupee is trading at 66.35 per US dollar.

Indian stock markets have too opened the day on a disappointing note. BSE-Sensex is trading down by 118 points (down 0.5%) and NSE-Nifty is trading down by 36 points (down 0.4%). S&P BSE Midcap is trading up by 0.07% while S&P BSE Smallcap is trading down by 0.3%. Sectoral indices have opened the day on a mixed note with stocks from metals and banking sector witnessing selling pressure. However stocks from telecommunication and pharmaceutical sector are observing buying interest.

Major stocks in the Food and Tobacco sector have opened their day in red. As per an articles in Economic Times ITC is planning to expand its brand 'Savlon' and introduce new products in the health and home care segments. ITC acquired 'Savlon' six months ago from 'Johnson & Johnson'. The new launch of products under the brand name of 'Savlon' will be in the categories of hand wash, hand sanitizer, shower gel, floor glass and toilet cleaners. ITC stated that it plans to bring nearly 100 different packs across variants within the categories as mentioned above. Savlon registered sales of Rs 650m during fiscal year 2014. The step taken by ITC is in line with its plans to expand its revenues from theITS FMCG portfolio. However given the strong competition already prevailing in these segments, the brand is expected to face a tough competition from the likes of Reckitt Benckiser's and Hindustan Unilever Limited (HUL) flagship brands of Dettol and Lifebuoy. The stock of ITC is trading down by 0.7%.

Stocks in the oil and gas sector have opened their day on a negative note. As per an article in Business Standard Oil and Natural Gas Corporation and its partner will invest above $ 24bn in producing natural gas from a giant field off Mozambique. The natural gas will be converted into liquid fuel (LNG) and would be exported to India. The gas will be converted into 'LNG' at an onshore liquefication plant and exported in cryogenic ships to consumption centers in India. The company is planning to produce first gas from Q1 of 2020. The project will have an ultimate capacity to produce 20 million tonnes of LNG annually and will be the world's largest LNG export site. The company has also cleared the required permissions to build up the project. They Stock of ONGC is trading up by 0.5%