Indian markets continue to trade weak on the back of sell off in heavyweights during the last two hours of trade. Stocks from healthcare and auto are seeing buying interest while profit booking is seen in stocks from the oil & gas and banking space.
BSE-Sensex is trading lower by 94 points while NSE-Nifty is trading 30 points below the dotted line. BSE-Midcap index is trading higher by 0.5% while the BSE-Smallcap index is trading 0.9% above yesterday's closing. The rupee is trading at 46.64 to the US dollar.
India's second largest cigarette manufacturer Godfrey Phillips India declared its 4QFY10 and FY10 results. For 4QFY10, the company's sales increased by 15% YoY. This was due to strong demand for cigarettes and tobacco products. However, the operating profits fell by 26% YoY as a result of sharp increase in costs of raw material and advertisement costs. Raw material costs were higher during the quarter as a result of high tobacco prices. The company also increased its advertisement spending for brand building. The company's bottom line fell by 30% YoY as a result of lower operating profit and higher interest expense. The company however got some relief from fall in effective tax rates. For the year, Godfrey's top line increased by 22% YoY while the bottom line increased by 9% YoY.
As per a news daily, India's largest biscuit manufacturer, Britannia has launched a milk based chocolate drink for kids - TigerZor Choco Milk. Britannia is currently testing waters by launching TigerZor in Hyderabad and Bangalore at a price of Rs 17 per 150 ml bottle. While Britannia has a strong brand in Tiger which it is currently looking to exploit, the truth is there are several other well entrenched players in the milk based drink category including Horlicks, Boost and Complan. Nestle had launched its brand Milo a few years back but it was without success. Britannia has recently been suffering due to food inflation and is looking to bolster its dairy product portfolio by adding value added products to it. However, in the milk based drink category Britannia has its task cut for it.