After trading firm during the previous two hours of trade, Indian stock market indices have held on to the gains on sustained buying across sectors. All the sectoral indices are trading in the green with stocks from Realty and Auto garnering maximum interest from the investor fraternity.
Currently, the BSE-Sensex is up by 170 points while NSE-Nifty is trading 51 points above the dotted line. BSE Midcap and BSE Small cap indices are both up by 0.94% and 0.67% respectively. The rupee is trading at 44.98 to the US dollar.
Power stocks are trading firm with Coal India and Neyveli Lignite leading the gains. However, GIPCL is trading weak. Despite a marginal decline in production for this fiscal, Coal India is likely to post 12% growth in its bottom line. Production for FY11 is expected to be around 430 m tones as compared to 431 m tones in the previous fiscal. Environmental issues impacted mining in the ecologically sensitive areas thereby affecting the overall production in the current fiscal. Had it not been for the environmental delays the production could have been higher by 18 m tones as compared to the previous fiscal. However, despite the production glitches the company is likely to register a PAT of Rs 110 bn (+12% YoY growth) on account of recent price revision, higher realizations from e-auction and savings arising out of reduction in manpower.
FMCG stocks are trading mixed with Paper Products and Dabur leading the gains. However, Godrej Consumer is trading weak. Kaya, Marico's skin care services clinic, has been witnessing positive same store sales in the last two quarters due to revival in the demand for skin care services. It may be noted that Marico currently operates Kaya chain of skin care-clinics in India, Bangladesh and Middle East. Until recently, the chain was running into losses. Subsequently management rejigged the model, discontinued a few loss making stores and made an entry into the international market. Right now the company is expanding rapidly in Middle East and Bangladesh. Overall it has 102 clinics across the globe. Considering the rapid expansion plans and increase in demand for skin care services Kaya will likely be a margin lever for Marico in the future.