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After opening the day in the green, the Indian indices continued to trade higher in the post noon session. Sectoral indices are trading on a positive note with stocks from the telecom, banking and capital goods sectors leading the gains.
The BSE Sensex is trading up 320 points (up 1.3%) and the NSE Nifty is trading up 99 points (up 1.3%). The BSE Mid Cap index and the BSE Small Cap index are also trading in the green, both up by 1.7%. Gold prices, per 10 grams, are trading at Rs 25,962 levels. Silver price, per kilogram is trading at Rs 34,138 levels. Crude oil, per barrel, is trading at Rs 2,103 levels. The rupee is trading at 67.58 to the US$.
Stocks in the paints sector are trading on a mixed note with Kansai Nerolac and Berger Paints leading the gains. As per a leading financial daily, Asian Paints has reported its results for the third quarter ending December, 2015 (Q3FY16). The company has posted 25.8% YoY increase in its net profit at Rs 4,630 million. However, exceptional expenses mitigated the profit growth during the period. The company bore an impairment loss of Rs 520 million taken on goodwill consolidation. Revenues during the period grew 13.9% YoY to Rs 41.6 billion. This was aided by the delay in festive season and pickup in the premium segment. Gross margins expanded 330 basis points (bps) to 47.1% YoY on back of better business-mix and benign input costs. Lastly, the company continued to gain market share against its peers during the period.
While most of the earnings growth came through the fall in crude oil prices, consumer demand and depreciation of rupee (subscription required) are the key factors to watch out for in the coming quarters.
As for its business plans, Asian Paints shall be launching a comprehensive sanitary ware range by end of January, 2016 under the brand name 'Ess Ess by Asian Paints'. The launch is planned with a view to create complete bathroom solutions over time. This also marks a step further towards the company's vision to shift from a paints company to a provider of complete decor solutions.
Asian Paints is India's largest paint company and Asia's third largest paint company. The company along with its subsidiaries has operations in 20 countries across the world. It is servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans. Presently its stock is trading down by 0.4%.
Media stocks are also trading mixed with Balaji Telefilms and Dish TV witnessing maximum buying interest. As per an economic daily, Zee Entertainment Enterprises will expand operations to Germany to launch a free-to-air TV channel by mid - 2016. This new channel will be showing Bollywood movies, Indian series, entertainment and general interest programmes. The core target groups are women between 19 and 59 years of age. The 24-hour service aims for distribution on all major cable and satellite platforms.
Meanwhile, in its results for the quarter ended December, the company posted 17% YoY increase in income to Rs 15.9 billion. This rise was mainly driven by higher advertisement revenue, which grew 27% on a YoY basis. However, a sharp increase in tax expenses, which were up by 51% YoY, and a fall in other income weighed on profits. After four consecutive quarters of growth, the company's net profit fell 11% YoY to Rs 2,750 million in the December quarter.
Zee Entertainment Enterprises is one of India's leading television media and entertainment companies. It is amongst the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 120,000 hours of television content. Presently the company scrip is trading up by 1.1%.
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