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FMCG, metals take markets down
Thu, 25 Jul Closing

RBI's measures continued to loom large today as well, prompting indices in the Indian stock market to close the day strongly in the negative. The fact that there was weakness in other global indices also did not help matters. Consequently, while Sensex today edged lower by around 286 points (down 1.4%), NSE-Nifty suffered loss to the tune of 83 points. The BSE Mid Cap and BSE Small Cap indices also fared badly, losing close to 1% each. Amongst sectoral indices, FMCG and metal counters declined the most.

As highlighted, while Asian stock markets closed lower, Europe is also witnessing a negative trend currently. The rupee is trading at Rs 59.1 to the dollar at the time of writing.

Ambuja Cements, one of India's largest cement firms, announced its results for the quarter ended June 2013 recently. On a standalone basis, its net sales declined by 8.6% during the quarter owing to poor sales volumes. Operating profits fell further and dipped by 32.1% YoY as operating margins declined from 28.3% in 2QCY12 to 21% in 2QCY13. Owing to sluggish sales and weak operating performance, company's net profits declined by 30.9% YoY. Consequently, profits for the first half fell 4% YoY on the back of a 6% fall in topline. While the company closed lower by 10% today, most of the decline was in view of concerns that Indian shareholder has been short changed in the restructuring exercise to be undertaken between Ambuja Cements and <>ACC.

Maruti Suzuki was another company that came out with its results. The automotive giant put up a good performance at the bottomline level as its net profits surged 49% YoY over the same quarter last year. Total income however came in lower by 5% YoY. Thus, what helped the bottomline swell despite the decline in topline were cheaper imports made possible due to decline in the value of yen. Thus, forex gain and cost reduction have helped Q1 results and have improved export realizations. Despite the good profit numbers, the stock closed flat today.

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