After starting the day on a flat note, Indian stock markets continued to remain range-bound in the last two trading hours. Majority of the sectoral indices are trading in the green with realty and healthcare trading the strongest.
Majority of FMCG stocks are trading in the green with Marico and Procter & Gamble Hygiene & Healthcare being the biggest gainers. Marico has posted a recovery in its profit performance in 3QFY12. Its topline grew by 29.4% led by 30% growth in its consumer care business. In the domestic consumer care market, the offtake grew by 16% YoY. All its business units reported double-digit growth during the quarter. The operating margin was down by 70 basis points to 11.5% mainly due to accounting for prior-period misstatement of expenses of its overseas subsidiary. Earnings grew by a modest 21% on account of jump in depreciation and tax outgo during the quarter.
As per a leading financial daily, the Delhi Electricity Regulatory Commission (DERC) has announced that the revised power tariffs post first fuel price adjustment (FPA) will be applicable in Delhi for three months starting from 1st February 2011. The power tariffs are estimated to increase by 5% as distribution companies pass on high cost of fuel needed to generate power. Earlier this year, the power distribution companies had argued in a proposal that they had to pay power suppliers like National Thermal Power Corporation (NTPC) and Indraprastha Gas Ltd. (IGL) on a monthly basis while it took them a minimum of two years to cover their expenses. From now on, fuel price adjustment will be done regularly every quarter in determining power tariffs.