After treading in the negative territory during the post noon trading session, the Indian stock markets recouped marginally but ended the day on a weak note. The BSE-Sensex closed lower by about 56 points or 0.25%. The NSE-Nifty closed lower by about 22 points or 0.3 %. Barring stocks from the realty, banking, power and healthcare spaces, losses were seen across the board with engineering stocks being least preferred today. However, the BSE Mid Cap and BSE Small Cap indices ended the day on a positive note, with the indices closing higher by about 0.9% and 0.3% respectively.
Stock markets in other parts of Asia ended the day on a negative note as well with both Indonesia and China closing lower by about 1.6%. The rupee was trading at Rs 61.55 to the dollar at the time of writing.
FMCG stocks ended the day on a mixed note with Godrej consumer products and Kokuyo Camlin leading the pack of losers. However, Emami Ltd and Jyothy Consumer Products led the gainers and closed the day in the green. Godrej Consumer declared results for the quarter and year ended March 2014. The company's consolidated net sales were up by 12% YoY for the quarter. However, the company reported 29.3% YoY decline in profits for the said period. The decline was on account of exceptional items recorded in the corresponding quarter of FY13. For full year FY14, the group posted a net profit of Rs 7.6 bn, which too is down 3.8% YoY as compared to the year ended March 31, 2013. Total income for the year was up 17.3% YoY as compared to the last year. The company declared a dividend of Rs 2.25 per share. As per the company, the results are not comparable with the corresponding periods of last year as the company has acquired/amalgamated various entities. This includes Godrej Hygiene Products Ltd, Godrej Indonesia Netherlands and acquisition of 49% stake in Nigeria business of Darling Group in FY14. The stock closed 3% down today.
Investment & finance stocks ended the day on a mixed note with IFCI and SREI Infra Finance leading the gains, while LIC Housing and Shriram Transport Finance closed the day on a weak note. Leading state owned financier REC is likely to raise Rs 300 bn via debentures in the current financial year. In the last fiscal too, the company had targeted to raise Rs 300 bn. But it managed to raise to Rs 270 bn till December. The funds raised are predominantly used for general business operations and to repay the existing debt on books. With the company refinancing a part of its debt by issuing debentures it appears that the earlier loans were taken at a higher interest rate. Refinancing at a lower interest rate now will help the company manage its borrowing cost better. It shall also improve profitability in the future.