Indian stock markets extended their initial losses during the last two hours of trade on the back of persistent selling activity across index heavyweights. All sectoral indices are trading weak except for IT stocks.
The BSE-Sensex is trading down by 131 points and NSE-Nifty is trading down by 49 points. BSE Mid cap and BSE Small cap indices too are trading down by 0.9% and 0.6% respectively. The rupee is trading at 50.19 to the US dollar.
Cement stocks are trading mixed with Mangalam Cement and Madras Cement leading the gains while JK Lakshmi Cement and Samruddhi Cement are in the red. According to a leading financial daily, Ambuja Cements is likely to spend Rs 18 bn by December 2013 to expand its production capacity. The cement company wants to set up a 2.2 m tonne clinkerisation unit at Nagaur in Rajasthan. As per the management, the feasibility for the said is complete and the company has received environmental clearance too. IT has also proposed to start a bulk cement terminal at Mangalore. This will be operational by September. Ambuja intends to fund all this through internal accruals. It may be noted that Ambuja Cements had a surplus cash of Rs 77 bn at the end of December last year.
Food stocks are trading weak led by Wadala Commodities and United Spirits. According to a leading financial daily, Britannia Industries is looking at gaining 15-20% market share in Kerala for its new oats and porridges range. The company wants to achieve this market share over the next 2 years. It may be noted that market for ready-to-cook oats products is estimated at Rs 0.3 bn in Kerala out of the overall national market of Rs 1.5 bn. This is mainly on account of cultural habit of eating rice gruel and ragi in Kerala. Britannia is looking at introducing single-serve sachets at Rs 10 each to suit customer requirements and convenience.