Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on May 01, 2024 on account of Maharashtra Day.

Metal stocks lead the downfall
Thu, 21 Feb 11:30 am

Indian equity markets continued to trade in the red during the previous two hours of trade. Almost all sectoral indices are trading in the negative led by metal and capital goods stocks.

The BSE-Sensex is trading lower by 170 points and NSE-Nifty is trading down by 50 points. BSE Mid Cap and BSE Small Cap indices are trading lower by 0.8% and 0.9% respectively. The rupee is trading at 54.46 to the US dollar.

Food stocks are mostly trading in the red led by Sterling Biotech and Tata Global Beverages. FMCG major Nestle India has announced its results for the fourth quarter ended December 2012. Backed by 9.6% YoY rise in domestic sales and 20.6% YoY jump in exports mainly to third parties, topline grew by 10% YoY. The domestic sales growth has been largely due to higher realizations and better product-mix. Reduction in raw material and other expenses enabled the company to expand operating margin by 2.2% to 22.6%. Net profits grew by 21% YoY on a 22% YoY increase in operating profit during the quarter. For the full year CY12, revenues were up by 11% YoY and operating margin increased by 1.3% to 21.8% on input cost savings. However, earnings for the year grew by a relatively subdued 11% YoY on a 18% YoY rise in operating profit. With production capacities coming on-stream during the year, there was a steep 81% YoY jump in depreciation charges and a five folds rise in interest outgo that pulled down profit growth for the year.

Mining stocks are trading weak led by Ashapura Minechem and Sesa Goa. As per a leading daily, Coal India is expected to lose an estimated 2.5 m tonnes of production and 2 m tonnes of sales because of the nationwide strike held on Wednesday. The company is set to lose more with the strike entering into its second day. The ongoing strike is being held to protest against broad economic issues that have little relevance to coal or Coal India. However, it has added to the woes of the coal miner which is as it is not being able to meet its production targets. In the meanwhile, Coal India's mines are running at full capacity but the Railways is not able to step up its wagon supplies beyond existing levels. The shortfall it seems will not be met for the rest of the year.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Metal stocks lead the downfall". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.