Indian share markets witnessed some recovery but still languished below the dotted line in the last two trading hours. Barring IT, all the sectoral indices are trading in the red with metal, consumer durables and power being the biggest losers.
Majority of the FMCG stocks are trading negative with Henkel India and Hindustan Unilever (HUL) being the biggest losers. Colgate announced its results for the quarter ended June 2012. The company reported a 12% topline growth led by 11% growth in offtake. During the quarter, Colgate further strengthened its leadership position by expanding volume market share in toothpastes to 54.5% from 52.4% in the year-ago quarter. The company has been able to maintain operating margin at 21.5% on the back of prudent management of other expenses. But net margins fell by 50 basis points to 15.5% due to double-digit increases in depreciation and tax outgo. The tax incidence increased to 28% from 27% in the year-ago quarter. Even other income earned during the quarter was down by 19% for the quarter. The stock is down 0.7%.
Most of the power stocks are trading in red with Indiabulls Power and GVK POWER & INFRA being the biggest losers. As per a leading financial daily, Tata Power commissioned its second 525 MW unit in Jharkhand. With the completion of the unit, its 1050 MW Maithon power project has become fully operational. The first unit of the project was commissioned in September 2011. The Maithon power project is a 74:26 joint venture between Tata Power and Damodar Valley Corporation (DVC). The power generated by the project will be supplied to DVC and also be provided to meet power shortages in the northern states. The stock is down 1.9%.