The major Asian stock markets have opened the day on a dismal note. Stock markets in China, Japan and Singapore are down by 2.1%, 1.3% and 0.4% respectively. The major stock indices in the European markets ended their previous session in red. However the benchmark indices in the US closed their previous session up by 0.6%. The rupee is trading at 66.43 per US dollar.
As per an article in Livemint, the Index of Industrial Production (IIP) rose to 4.2% in July. Manufacturing, which contributes close to 76% of IIP, registered a growth of 4.7% in July. The spurt in manufacturing activity was led by a pick-up in the capital goods and consumer durables segment. The capital goods segment which signals to investment demand in the economy, grew by double digits (10.6%) after a gap of six months. The article stated that the surge in the capital goods sector might be attributable to increase in government spending. Retail inflation too fell sharply to 3.8% in July from 5.4% in the previous month, increasing the leeway for a cut in the policy rates.
Stocks in the FMCG sector are trading on a positive note. As per an article in Economic Times, Godrej Consumer Products Ltd (GCPL) has completed the acquisition of 40% in Chile's hair colour and cosmetics company 'Cosmetica Nacional'. The foreign company is a market leader in the hair colorant and cosmetics segment in Chile. Earlier in January 2012, GCPL had acquired a 60% stake in this company. With the purchase of remaining stake of 40%, Cosmetica Nacional will become 100% subsidiary of GCPL. Stock of CGPL is trading down by 0.6%