Indian equity markets have continued in red during the previous two hours of trade. The most noticeable upward movements have been witnessed in the IT and FMCG sectors while auto and capital goods have faced the maximum selling pressures.
Retail stocks are trading on a mixed note with Titan Industries and Zodiac Cloth leading the gains while Trent and Koutons Retail are leading the losses. According to a leading financial daily, Titan Industries will delay its entry into the Chinese market. The Company's management has said that they will prefer to have a wait and see approach given Titan's unsuccessful experience in the 1990's when the Company made a foray into Western-European markets. In spite of employing European designers and a London based advertising agency, desired results were not obtained. The management further stated that Titan will continue with its policy of entering one new country at a time and gradually increase market share in it keeping a long term horizon in mind. The organised Chinese watch market is pegged at around US$ 2 bn and has been growing at a CAGR of 11% over the last five years. While the Swiss watch makers dominate the luxury segment and there are numerous unbranded players catering to the low-end segment, there are opportunities in the branded mid-market segment.
PSU Bank stocks are all trading in red with Syndicate Bank and Oriental Bank leading the losses. According to a leading business daily, State Bank of India (SBI) has fixed the issue price with regard to preferential allotment to the Government of India. The issue price stands at Rs 2,312.78 per share and SBI hopes to raise approximately Rs 30 bn from the Government. The preferential allotment is a part of SBI's capital infusion plan for the current financial year. The infusion will enable the Bank to support national and international banking operations through its subsidiaries and associates. The Government infused Rs 79 bn in SBI last financial year to boost SBI's Tier 1 capital base, following which Government's share-holding increased to 61.6% from 59.4%. SBI's stock is trading down by 1.1%.