Indian equity markets continued to trade well above the dotted line in the post noon trading session. Majority of the sectoral indices are trading positive with realty, capital goods and power stocks being the biggest gainers. Only IT and consumer durable stocks are trading in the red.
Majority of the food stocks are trading mixed with Sterling Biotech and Godfrey Phillips being the biggest gainers whereas United Spirits and Golden Tobacco are trading in the red. As per a leading financial daily, manufacturers of health food drinks (HFD) have come under scanner after the Food Safety Standards of India (FSSAI) has issued them notices for misleading consumers about health benefit claims made without proper scientific data back-up. Companies such as GlaxoSmithKline Consumer Healthcare (GSKCH) with Horlicks and Boost brands and Heinz owning the Complan brand have been asked by FSSAI to take the brands off the shelf until they prove their claims of rapid growth in height and intelligence being promoted through their brands. Thus HFD companies, which had been aggressively marketing their products, have been left in a lurch. GSKCH stock is currently up 0.4%.
Most of the automobile stocks are trading in the green with Ashok Leyland and Escorts being the top gainers. As per a leading financial daily, Tata Motors is planning to launch its Aria utility vehicle(UV) in the sub Rs 10 lakh price segment to take on competition from Mahindra & Mahindra's XUV 500 & Toyota's Innova and expand market share in the rapidly growing utility vehicle market. The company's flagship UV Aria is presently priced in the range of Rs 11.7 lakh to Rs 14.9 lakh. Its sale volumes fell below 150 units per month in the domestic market. To revive sales of Aria, Tata Motors is planning to reduce the features in the UV and to launch it at a more competitive price for the Indian consumer. The stock is currently up 0.2%.