The Sensex today is down by around 101 points (0.5%), while the NSE-Nifty is down by around 27 points (0.4%). While the BSE Mid Cap is trading lower by 0.2%, the BSE Small Cap index is up by around 0.3%. The rupee is currently trading at Rs 62.48 to the US dollar.
Textile stocks have opened the day on a weak note with Grasim Industries and Bombay Dyeing leading the losses. Grasim Industries has announced the results for the third quarter(3QFY14) and nine month period of the financial year 2013-2014 . During the quarter, the company's standalone net sales stood at Rs 14,558 m, higher by 19.8% YoY. Operating profits declined by 9.6% YoY to Rs 2,088 m as operating profit margins contracted from 18.8% in 3QFY13 to 13.7% in 3QFY14. Depreciation charges and interest expenses increased by 38.4% YoY and 25% YoY respectively. At the bottomline level, standalone net profits declined by 36.3% YoY to Rs 1,261 m. Net profit margins contracted from 16.1% in 3QFY13 to 8.6% in 3QFY14. During the nine month period, while the company's sales increased by 6.2% YoY, net profits declined by 10.3% YoY.
FMCG stocks have opened the day on a mixed note with P&G Hygience, Archies Ltd and Marico Ltd leading the gains. However, Godrej Consumer Products Ltd (GCPL) and Kokuyo Camlin are trading in the red. As per a leading financial daily, FMCG player Marico has forayed into the hair colour business with its Livon brand. The company is set to focus on the Paras Pharmaceuticals products it had acquired two years ago. It is worth noting that Livon is priced about 30% lower than category leader L'Oreal. Marico's brand will also compete with other brands such as Procter & Gamble's Wella, Revlon, Godrej Expert and Streax and CavinKare's Indica.