After trading in the positive for the most part of the day, the indices maintained their momentum in the final hours of trade thus closing on a positive note. While the BSE-Sensex today closed higher by 178 points, the NSE-Nifty closed higher by 62 points. Smallcaps and midcaps too witnessed gains today. The BSE Mid Cap index and the BSE Small Cap index closed the day higher by 1.5% each. Sectoral indices closed the day on a positive note, with engineering and metal stocks being the top gainers today.
As regards global markets, Asian indices closed on a mixed note today. The rupee was trading at Rs 62.15 to the dollar at the time of writing.
FMCG stocks have ended the day on a positive note with Jyothy Labs and Bata India being the only two losers today. The internet seems to be on track to become a very important channel of advertising as well as distribution for FMCG companies. A new study conducted by Google and Bain & Company posits that with the Internet would influence over one third of total sales in the FMCG sector by 2020. Further, it forecasts that online sales will constitute US$ 5 bn by then. It must be noted that this would in other words mean 5% of total FMCG sales will be online by 2020. This would be a 50 times growth from current level of just 0.30% of total FMCG sales coming from the online medium.
As per a leading business daily, RIL has filed an arbitration notice challenging the oil ministry's decision to take away 814 sq km of its eastern offshore KG D6 area. This region contained 5 gas discoveries. Reports indicate that the company in the notice has demanded that the dispute on taking away the area be referred to arbitration. It also demands that the relinquishment order be withdrawn and that the government pay compensation for breach of contract. It is worth noting here that as per current norms, a contractor is allowed to retain only that area where discoveries are made. However, in the case of KG D6, the Directorate General of Hydrocarbons ordered larger area to be taken away as the company is alleged to have failed to develop the finds within the stipulated time.