Indian stock markets continued to trade below the dotted line during the previous two hours of trade led by consistent selling among the Index heavy weights. However, the mid and small caps stocks have pared some of their losses. Selling activity is led by stocks from realty and power sectors.
The BSE-Sensex is trading down by 119 points and the NSE-Nifty is trading down by 39 points. The BSE Mid Cap index is trading down 0.5% and the BSE Small Cap index is trading down 0.1% today. The rupee is trading at 59.26 to the US dollar.
Food & Tobacco stocks are trading mixed today. While Golden Tobacco and Tata Global Beverages are trading higher, ITC is trading on a weak note. As per a leading business daily, Tata Global Beverages plans to stick to its core business of tea, coffee and enhanced water to exploit the full potential. The company doesn't want to foray in to production of beverages like energy drinks, fruit juices and carbonated drinks over the next 5 years at least. Its wants to increase its revenue size in the coffee segment which is pegged at just 20% to its total revenues as compared to 70% from tea. As compared to tea, the per capita coffee consumption in India is still lower than the world average. The company has a joint venture with Starbucks in the coffee segment. The joint venture would be expanding its cafes network from the current size of 46 outlets in India.
Most of the PSU banking stocks are trading lower. Union Bank of India is leading among the losers, Allahabad Bank is trading firm. As per a leading business daily, government owned Union Bank of India expects its total business to grow by around 12% in FY15 from Rs 5,320 bn in FY14. Notably, the bank's business in FY14 grew by about 11.5% YoY. The bank believes that rising NPAs which is its major area of concern is expected to fall on account of overall improvement in the Indian economy. The bank's net NPA increased to 2.3% in FY14. With respect to expansion and offering in the rural areas, the bank's management remains committed. It plans to increase its rural network to 600 by March 2015.