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Indian equity markets slide
Tue, 14 May 01:30 pm

Backed by consistent selling activity Indian equity markets slipped down and are hovering around the dotted line in the post noon trading session. Stocks from oil and gas and healthcare spaces are leading the pack of gainers, while those from consumer durables and FMCG sectors are among leading losers.

BSE-Sensex is down by 3 points and NSE-Nifty is trading up by 2 points. While BSE Mid Cap is trading up by 0.11%, BSE Small Cap index is trading up by 0.07%. The rupee is trading at 54.63 to the US dollar.

Majority of the food stocks are trading in the green with Godfrey Philips and GSK Consumer being the principal gainers. However, Tata Coffee and Golden Tobacco are the major losers. Nestle has declared its results for the quarter ended March 2013. The company posted a 10% rise in topline on a 7.7% growth in domestic sales. Domestic sales contribute more than 90% to overall revenues. Nestle's exports turnover grew by 51% largely contributed by exports to affiliates. Its operating margin improved by 1.2% backed by input cost savings from waning commodity inflation and controlled other expenditure. However, a steep 249% jump in interest cost and higher depreciation from the expanded capacities has constricted net profit growth to a mere 1.2% for the quarter. Even the tax incidence has risen to 35% from 32% in the year-ago quarter. Nestle stock is marginally up.

Private banking stocks are trading mixed, with Federal bank and Laxmi Vilas bank are among the leading gainers while City Union bank and South India bank are leading losers. As per financial daily, the Reserve bank of India (RBI)conducted investigation pertaining to money laundering allegations on pvt banks. As per the investigation conducted so far, found that the banks are involved in huge violations ranging from huge cash deposits with PAN to dummy numbers. The three private banks viz; HDFC bank, ICICI bank and Axis bank are probed to be doing these illegal activities. Reportedly, as per the RBI investigation there were several instances where cash deposits below Rs 10 lakhs to avoid being reported as cash transaction report (CTR). Further it was also found that these banks were accepting Rs 50,000 and above without PAN number. Some time back, these three banks were first named in a sting operation conducted by investigative website, Cobrapost. The recent report by RBI seems to make this case of allegations on the banks stronger.

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