Indian share markets pared early gains but managed to remain marginally positive in the post-noon trading session. Sectoral indices are trading mixed with consumer durable and FMCG stocks being the biggest gainers. Power & capital goods, on the other hand, are trading in the red.
Most of the automobile stocks are trading in the green with Escorts and Force Motors being the biggest gainers whereas TVS Motors and Maharashtra Scooters are trading in the red. As per a leading financial daily, Maruti Suzuki has revised upwards its sales growth projections for FY15 in line with the improvement in offtake in the domestic automobile market. The company expects double-digit growth in the range of 12-16% for FY15. Maruti Suzuki had earlier projected sales growth of 7-8% during the year. The company would be investing Rs 40 bn over the next five years for the development of at least five new products at the domestic Research & Development Centre. But the new products will continue to have platform and power trains from Suzuki Japan. The first model with substantial local content will be a sports utility vehicle to be launched in 2016. This development is significant as the company will have to shell out royalty lower than 5% for these new cars designed and developed in India. Maruti Suzuki stock is currently trading up 1.2%.
Most food & tobacco stocks are trading on a higher note today. VST Industries and Britannia Industries are leading the pack of gainers, while Nestle is among the few stocks trading weak today. As per a leading business daily, Britannia Industries is planning to invest about Rs 2 bn for gaining market share and leading the branded biscuits segment led by its management vision. This investment will be utilized towards capacity expansion, innovation, introduction of superior products and technology upgradation. As part of its turnaround strategy, the company is planning to build R&D team to ensure pipeline of innovations and superior new products ready for launch in the next few months. It is also planning to enter the gourmet category. Reportedly, Parle is currently leading the branded biscuits segment with 38% market share, followed by Britannia with 34% share.