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IT and FMCG stocks buck the trend
Wed, 28 Sep 11:30 am

Indian stock market indices have moved in to the negative zone after opening trade on a flat note this morning. All sectoral indices are trading in the red except IT and FMCG stocks.

The BSE-Sensex is trading down by 115 points and NSE-Nifty is trading down by 40 points. BSE Mid Cap and BSE Small Cap indices are trading lower by 0.3% each. The rupee is trading at 49.00 to the US dollar.

PSU Banking stocks are trading weak led by Bank of Baroda and PNB. According to a leading financial daily, Corporation Bank is planning to float an infrastructure debt fund. The company is seeking the approval of its board for the same. The PSU bank is looking at partners to launch such a fund. Other banking players like IDBI, IIFCL and IDFC have earlier expressed similar interest in setting up a debt fund. For Corporation bank, it has lent around 10% of its total advances of Rs 790 bn to infra sector itself. It cannot further increase this exposure as it has to comply with the sectoral limits set by the Reserve Bank of India (RBI).

Retailing stocks are trading mixed. Zodiac clothing and Trent are leading the gains, however losses are led by Koutons Retail and Pantaloon. As per a leading financial daily, retailers are witnessing about 20% YoY growth in their same store sale numbers since May. This is mainly being driven by consumer buying groceries and other everyday use items in bulk packs. With food and fuel prices rising higher over the last few months, consumers prefer to buy the bulk packs that are relatively 5-20% cheaper. This doubled the sales of bulk packs for retailers like Pantaloon and Spencer's. Pepsi Co India, Parle Products and Emami have reported spurt in bulk pack sales.

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