Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

FMCG, pharma and IT stocks in demand
Tue, 30 Apr 01:30 pm

Indian share markets lost all their morning gains and hovered around their neutral zone during the post noon trading session. While stocks from the FMCG, pharmaceutical and information technology spaces are leading the pack of gainers, those from the capital goods and realty sectors are amongst the most unfavored.

The BSE-Sensex is trading flat while the NSE-Nifty is down by about 15 points. The BSE Mid Cap and BSE Small Cap indices are trading lower by about 0.2% and 0.5% respectively. The rupee is trading at 54.05 to the US dollar.

FMCG stocks are currently trading firm led by Hindustan Unilever, Colgate and Gillette India. FMCG major Godrej Consumer Products Limited announced its results for the quarter ended March 2013 recently. The company's consolidated net profits surged by about 73% YoY during the quarter. Its revenues, on the other hand rose by about 30% YoY during the quarter. The faster rise in profits was aided by an exceptional gain. On excluding the same, the profits are higher by about 8% YoY. At the operating level, the company margins contracted by 2.4% YoY to 15.1%. The decline was largely due to high marketing expenses for new launches. However, the company expects the result of these expenses over the next few quarters.

Power stocks are currently trading weak led by Lanco Infratech, Reliance Power and Adani Power. As per a leading business daily private sector power major Tata Power is seeking coal assets in the US, Canada and Columbia. The rationale behind doing the same is the on the back of the rise in gas supplies and decline in the fuel's prices. As per the company's management, its plans of acquiring assets in South Africa may not go through on the back of infrastructure concerns. It may be noted that Tata Power had acquired assets in Indonesia for meeting its requirements back in India. However, on the back of the Indonesian government pegging its coal to global benchmark prices, the same became very expensive. And as such some of its projects became unviable. However, with US power generators looking at gas extraction, coal reserves have become relatively free and therefore cheap. While it may be too early to say in terms of prices and acquisition costs, this move would definitely help the company in terms of fuel security.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "FMCG, pharma and IT stocks in demand". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.