In the last 2 hours of trade the Indian markets remained volatile as they crossed the dotted line and then returned back to the negative territory. Buying interest is seen in FMCG and banking while stocks in oil & gas, realty and power are witnessing massive sell off activity.
The BSE-Sensex is trading lower by 52 points while the NSE-Nifty is trading 19 points below the dotted line. The BSE-Midcap Index is down by 0.2% while the BSE-Smallcap index is trading marginally higher than yesterday's closing. The rupee is trading at 44.48 to the US dollar.
FMCG is the top gaining sector this morning with Godrej Consumer Products being the top gainer in the market. VST Industries declared its yearly results. The company’s sales for FY10 shot up by 24% YoY while the operating profit zoomed by 34% YoY. This increase was primarily due to fall in other expenditure as a result of foreign exchange gains. Lower staff costs as a percentage of sales also helped increase operating profits. However, higher tobacco prices continue to rule and capped the company's operating profit growth. The company, however, had a dismal show at the net profit level as extraordinary expenses in the form of VRS ensured that bottomline growth remained flat. However when adjusted for all extraordinary items and foreign currency gains the company's bottomline grew by 3.7% YoY.
Stocks in the auto sector are trading weak led by Amtek Auto and Apollo Tyres. According to a leading business daily, India's third largest two-wheeler major TVS Motor is betting big on the scooter segment. The company is aiming to increase its market share in the scooter segment from the present 22% to 30% by the end of FY11. It expects to grow the average sales in this segment to 150,000 units per month, leading to a 50% YoY growth in this segment in FY11.
It may be noted that the company recently un-veiled a new unisex scooter "Wego" which will be first launched in Maharashtra followed by other states within the next 3 months. It is priced at Rs 42,361 (ex-showroom). TVS Motor targets to sell 20,000 units of 'Wego' per month. We believe that success of new launches will further buoy the company's two-wheeler segment which grew at an industry beating rate of 42% YoY in 3QFY10.