Indian indices lost some of their opening gains on profit booking in heavy weights during the previous two hours of trade. Stocks from the metal and realty space are trading firm while stocks from the FMCG space are trading weak.
The BSE-Sensex is trading up by 105 points while NSE-Nifty is trading 32 points above the dotted line. BSE-Midcap is up by 1.2% while BSE-Smallcap index is trading 1.08% above yesterday’s closing. The rupee is trading at 44.32 to the US dollar.
Food stocks are trading mixed with Agro Tech Foods and Lakshmi Energy trading firm while Nestle and ITC are trading weak. As per a leading financial daily, GlaxoSmithKline Consumer Healthcare (GSK) is expecting one-fifth of its growth to come from newer categories by next year. The company is looking to expand its existing portfolio across categories and is evaluating entering newer categories in the health foods and beverages space. As per the company’s spokesperson, the company is planning to launch new innovative biscuits like biscuit for toddlers. The company recently launched milk biscuits, cornflakes, cream biscuits and noodles. The company also recently announced the launch of its global energy drink, Lucozade Sport, in the country. Moreover, the market is rife with speculation that the company is also in the process of relaunching its global oral care brand, Aquafresh, in India. It is clear that GSK is planning to grow aggressively and transform itself from a health drink company to a nutrition company.
Auto stocks are currently trading firm led by Bajaj Auto, Hero Honda, TVS Motor and Maruti Suzuki. A leading business daily recently reported that tractors to SUV major M&M is looking at setting up a tractor manufacturing facility at Zaheerabad in Medak district of Andhra Pradesh. The company will be investing Rs 3 bn on this facility over the next three years. It has also sought a 10 year tax relief from the state government, which is believed to be examining this request from the company. M&M has assured of providing direct employment to about 2,000 people and indirect employment to another 5,000 people. M&M has nearly 340 acres of land in Zaheerabad, where it manufactures and assembles automobiles like commercial vehicles, buses and three-wheelers. This proposed unit will be manufacturing nearly 90,000 tractors per annum, besides other commercial vehicles. At the end of FY10, the company had an installed capacity of manufacturing about 233,000 units per year.