Most of the automobile stocks are trading in the green with Maruti Suzuki and Mahindra Scooters being the leading gainers. As per a financial daily, Maruti Suzuki is expected to benefit due to a depreciating yen currency. The Japanese currency has slumped to a three-and-half year low levels, after Bank of Japan (BOJ) on Friday proposed a new plan to inject money into the economy. Thus, yen is trading at lower levels, post the announcement by BOJ. Reportedly, weakness in yen will prove to be beneficial for Maruti Suzuki. This is because, a weaker yen would improve Maruti's margins by reducing the costs of importing auto parts from Japan. Further, Maruti makes royalty payments denominated in yen account for 5-6% of its sales, which would also help in margin improvement. The stock of Maruti was trading up by 7%.
Majority of the food companies are trading in the green with Ruchi Soya Ind and Tata Coffee being the major gainers. However, United Spirits and ITC are among the major losers. As per a leading financial daily, rising input costs is forcing packaged food companies to exit popular price points such as Rs 5 and Rs 20 for higher price points of Rs 6 and Rs 22. ITC plans to gradually increase price points across its product portfolio comprising of Sunfeast biscuits and Bingo wafers. As per the company, it would move to higher price points by providing enhancement either in taste or pack weight. Parle Products has increased prices of Top biscuits from Rs 5 to Rs 6 and Rs 20 to Rs 22. According to the company, there is a limit on pack weight reduction to offset higher input cost as the consumer pleasure may be lost from the reduced pack sizes. Last year, the consumer affairs ministry had mandated 19 product categories to be sold under specified standard weights and sizes.