Although the Indian stock markets did go into the positive during the closing stages, they could not hold on to the gains for long and eventually ended the day marginally in the negative. Thus, while BSE-Sensex closed with a decline in the region of 20 points, NSE-Nifty lost a meager 6 points. BSE Midcap and BSE Small cap indices hogged the limelight yet again, going up by 1% each. On the Sensex, three stocks fell for every two that ended in the positive.
While most Asian stock markets closed in the positive today, Europe is trading largely in the negative currently. The rupee was seen trading at Rs 44.2 to the dollar at the time of writing.
With the investors lapping up most of the cheap large cap stocks over the past couple of months, the attention seems to have now shifted to mid and small caps. It should be noted that BSE Mid and small cap indices had underperformed its large cap counterpart in the recent rally and hence, the buying trend in these counters is an effort towards making up for lost time and opportunity in the so called smaller market cap indices.
Food stocks closed mixed today with top gainers being Lakshmi Energy and VST Industries. GSK Consumer, the health drink giant also closed in the positive albeit marginally. As per reports, the company is looking to acquire brands so that the growth potential in India could be tapped even further. At the same time though, it is also aware of the steep valuations that are doing the rounds currently. Besides making health drinks brands like Horlicks and Boost, the company is also a distributor of OTC (Over the counter) products like Crocin, Eno and Iodex. Its associate company in India, GSK Asia Private recently launched a toothpaste brand called Sensodyne. Shareholders of the company would have been enthused had the launch been by the listed entity.
The Indian pharma packalso closed mixed today. Leading gainers were Zandu Realty, J B Chemicals and Biocon. Glenmark Pharma was another counter that closed in the positive. This was perhaps on the back of news that the company has entered into an exclusive arrangement with Immanence-IDC, a leading Canadian company for distribution of their high-end anti-ageing cosmeceutical range of products. The agreement will cover eight countries for Glenmark. The agreement is for a period of 10 years and marks the company’s presence in this fast growing specialised dermatology segment.