The BSE-Sensex is up by about 89 points, while the NSE-Nifty is trading higher by about 21 points. The BSE Mid Cap Index is trading up by about 1.3% while the BSE Small Cap Index is trading up by 1.7%. The rupee is trading at 60.1 to the US dollar.
The International Monetary Fund (IMF), in its latest World Economic Outlook, has predicted a recovery in the Indian economy. The international body expects the economy to grow by 5.4% in FY15 and accelerate to 6.4% during FY16 backed by a stronger world economy, improvement in export competitiveness and implementation of policies that encourage investments and confidence among investors. It also expects consumer price inflation (CPI) to reduce from 9.5% in FY14 to 8% in FY15 and further to 7.5% in FY16.
With respect to global economy, the IMF revised the growth projection marginally downward to 3.6% in 2014 and 3.9% in 2015. However, it expects global economic activity to remain strong on back of stronger growth in advanced economies led by the US.
Majority of the textile stocks are trading in the green with Himatsingka Seide and Pioneer Embroideries being the top gainers while Vardhaman Holdings and Arvind Ltd are trading weak. As per a leading financial daily, textile major Arvind is steadily consolidating its business of brands. The acquisition of 49% stake of the Indian business of the global brand Calvin Klein has strengthened its position in the 'bridge to luxury' category. The company reportedly has a 90% share in this category through its joint ventures or licensee brands such as Tommy Hilfiger, Nautica, GANT and others. The Calvin Klein brand is expected to further strengthen its leadership position and is expected to clock sales of Rs 5 bn over the next five years.
Arvind will be stepping up advertisement in the brand and is looking to open 15 standalone stores each year. According to the company, while the existing brands will generate sales of Rs 33 bn, the rest will be contributed by brands such as Ed Hardy, Hanes, Calvin Klein. The company's stock is currently trading lower by about 0.7%.