Indian stock market indices have managed to continue to trade just above the dotted line on back of buying interest in index heavyweights during the previous two hours of trade. Most of the sectoral indices however are trading in the red while Capital goods and Banking stocks are trading in the green.
The BSE-Sensex is up by 48 points while NSE-Nifty is trading 5 points above yesterday's closing. BSE Mid Cap and BSE Small Cap indices are down by 0.4% and 0.3% respectively. The rupee is trading at 61.84 to the US dollar.
Auto stocks have opened the day on a firm note with Ashok Leyland, Hero Motocorp and Bajaj Auto leading the pack of gainers. According to a leading financial daily, M&M subsidiary Mahindra Two Wheelers today completed the 28 m euro acquisition of a 51% stake in Peugeot Motocycles (PMTC), a part of the euro 54 bn France based PSA Group. Mahindra Two Wheelers has infused euro 15 m into PMTC to finance projects through partnership under the terms of agreement and Mahindra has also bought shares held by PSA which would allow Mahindra to take a 51% stake in PMTC. PMTC, a key player in urban mobility in Europe for 116 years, is the oldest motorized two wheeler manufacturer in the world.
FMCG stocks are trading mixed today, Hindustan Unilever and TATA Beverages being the leading gainers while, ITC Ltd, Dabur India and Colgate being the leading losers. According to a leading business daily, Hindustan Unilever, the country's largest consumer goods company has cut down prices of soaps and detergents, its largest category that yields 50% of its revenues, by 5-10 %, during the third quarter. The company also increased advertising and promotional spending by Rs 480 m, taking it to 12.9% of net sales. It may be noted that Hindustan Unilever's products reach nearly 7 m outlets in the country.