After opening the day on a bearish note, the Indian Indices have continued to trade negatively. Sectoral indices are trading on a mixed note with energy and metal stocks leading the losers. However, software and pharma stocks are trading in the green.
The BSE-Sensex is trading lower 90 points (down 0.33%) and the NSE-Nifty is trading down 38 points (down 0.45%). The BSE Mid Cap index and the BSE Small Cap index are also trading negatively, down by 1% and 0.6% respectively. The rupee is trading at 64.81 to the US dollar.
Stocks in the FMCG sector are trading on a discouraging note with Jyothy Labs and Marico Ltd bearing the maximum burnt. As per an article in Business Standard, price cuts by FMCG companies have failed to boost their Q1 volume growth. This was after they witnessed that a fall in realizations due to price cuts was not compensated by an equivalent rise in volume growth. Of the top 10 FMCG companies by market capitalizations, six saw lower revenue growth as compared to the corresponding year ago quarter. However, falling input costs due to softening of raw materials and crude oil prices have aided strong margin expansion for these companies. Notably, of the above ten, nine saw strong EBIDTA margin expansion.
Indian pharma stocks are trading mixed with Sun Pharma leading the gainers and Dishman Pharma leading the losses. According to financial times, India's largest pharma company by revenue Sun Pharmaceuticals reported a 60% YoY decline in its net profits for the quarter ended June 2015. This was mainly due to the one time and exceptional charges of Rs 6.8 bn which relates to impairment of fixed assets, goodwill and other related costs. All of these were following the acquisition of Ranbaxy. Revenues for the company witnessed a rise of 3% on a YoY basis. Presently the scrip of Sun Pharmaceuticals is trading up by 4.2%.