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IT, FMCG stocks not in favour today
Mon, 6 Aug 01:30 pm

The Indian equity markets continued to trade in a range bound manner during the post noon trading session. Barring IT and FMCG stocks, interest is being seen in stocks across the board with those from the Oil and gas, capital goods and Auto spaces leading the pack of gainers.

The Sensex today is trading higher by about 200 points (up 1.2%) while the NSE-Nifty is trading higher by about 60 points (up 1.2%). However, midcap and smallcap stocks seem to be in favour as the BSE Mid Cap and BSE Small Cap indices are trading higher by about 0.7 and 1% respectively. The rupee is trading at 55.56 to the US dollar.

FMCG stocks are currently trading weak led by Dabur, ITC and Britannia. Marico announced its results for the quarter ended June 2012 recently. The company posted a robust topline growth of 22% driven by a strong 16% volume growth in the domestic consumer products business. This business contributes 69% to consolidated revenues. International business that contributes 24% to overall sales grew by 17% during the quarter. Barring Bangladesh and MENA (Middle East & North Africa), businesses in all geographies grew in double-digits during the quarter. The specialized skin-care business 'Kaya' reported same store sales growth of 12%. Aided by waning commodity inflation, the company has been able to overcome the steep rise in ad spends and clock a 260 basis points (2.6%) expansion in operating margin. The company's earnings surged by 46% on the back of 48% jump in operating profit earned during the quarter. However, the company believes that the superlative financial performance is not likely to be sustained and expects moderation in the coming quarters.

Healthcare stocks are trading firm led by Wockhardt, Bilcare, Dishman Pharma and Lupin. As reported by the Hindu Business Line, Aurobindo Pharma announced to that it has received final approvals from the US Food and Drug Administration (USFDA) for manufacturing and marketing 'montelukast sodium tablets' and montelukast sodium chewable tablets in the US. Given that the annual sales (the 12-month period ended March 2012) of the former are in the region of US$ 3.5 bn (about Rs 190 bn), while that of the latter is about US$ 1.1 bn (about Rs 60.5 bn); this provides a big market for Aurobindo Pharma. Montelukast Sodium is used in the treatment of prophylaxis and chronic treatment of asthma, prevention of exercise-induced broncho-constriction in patients older than 15 years of age. With these approvals, the company is believed to now have received a total of 157 bulk drug approvals from the US FDA.

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Feb 19, 2018 03:37 PM