Indian stock markets continued to trade in the negative territory during the previous two trading hours on account of persistent selling activity among the index heavyweights. However, the mid and small cap indices continued to trade positive. Among the sectoral indices, IT and metals stocks are leading the pack of losers, whereas realty is among few sectors trading firm today.
The BSE-Sensex is trading down by 229 points and the NSE-Nifty is trading down by 62 points. However, the BSE Mid Cap index is trading up by 0.2% and the BSE Small Cap index is trading up 0.7% today. The rupee is trading at 60.99 to the US dollar.
As per a leading business daily, Wholesale Price Index (WPI) for the month of August has been released. It declined to 3.74% YoY during the month versus 5.19% YoY in July, which is the lowest in the past 5 years. The primary articles inflation declined to 3.89% in August, while the manufacturing goods inflation came down to 3.45%. Highest fall in inflation was witnessed in the prices of food and power & fuel which fell to 5.15% and 4.54% in August from 8.43% and 7.4% respectively in July. However, Consumer Price Index (CPI) which is been majorly followed by RBI for its monetary policies, fell marginally to 7.8% YoY in August compared to 8% YoY in July. Due to CPI remaining almost flat, it is likely that RBI's tough stand on inflation might continue in the upcoming credit policy.
Majority of the FMCG stocks are trading in the red with Gillette India and Godrej Consumer Products being the major losers. Jyothy Consumer and Dabur are among the stocks trading positive. As per a leading financial daily, Marico is reorganizing its business with an aim to double its turnover in four years. The company had integrated its domestic and international businesses last year to consolidate operations. In the second phase, the company would achieve synergies between the two businesses in terms of cross-pollination of brands and offerings, talent mobility and transfer of best practices, processes and systems for standardization across markets. The reorganization will focus on three key areas namely skin, hair nourishment and male grooming. The company will also create regional hubs to grow business and derive synergies of scale across manufacturing units. Marico has also been aggressive in increasing its direct distribution in India for a wider reach of its products in outlets. The company's direct reach currently stands at nine lakh outlets which would be increased over time. Apart from kirana stores, the company is also targeting chemists, cosmetics outlets and food stores for a greater reach of its products. Marico stock is currently trading marginally down.