The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 0.6%) and Indonesia (up 0.7%) leading the gains. However, the stock markets in China (down 0.9%) and Hong Kong (down 0.9%) were leading the losses. The Indian stock market indices have opened the day on a firm note. Barring banking and oil and gas, the sectoral indices have opened in the green with the stocks in the realty and metal space leading the gains.
The Sensex today is up by around 37 points (0.2%), while the NSE-Nifty is up by around 20 points (0.3%). The BSE Mid Cap and BSE Small Cap stocks have also opened in the green with the BSE-Midcap index and the BSE-Smallcap index up by around 0.6% and 0.5% respectively.
Auto stocks have opened the day mainly in the green with Ashok Leyland Ltd and Eicher Motors Ltd leading the gains. As per a leading financial daily, TVS Motor Company has launched a new scooter model called TVS Jupiter. Targeted at traders and self-employed individuals, this is the first scooter by the TVS Group targeting the male segment. The company currently sells about 35,000 scooters per month. With the launch of TVS Jupiter, the company expects sales to increase to 50,000 units per month. The Jupiter, manufactured at its Hosur unit, is priced at Rs 50,200 in Tamil Nadu. It is worth noting that the male scooter segment accounts for about 36% of the total scooter sales in the country.
FMCG stocks have opened the day mainly in the green with Paper Products Ltd and Kokuyo Camlin Ltd leading the gains. As per a leading financial daily, FMCG companies are likely to report single-digit volume growth during the June-September quarter (2QFY14) on account of lacklustre consumer demand and high inflation. The slowdown in the economy has lowered discretionary consumption and has also impacted offtake of premium products. Moreover, there has been a significant slowdown in urban markets, the mainstay of FMCG companies. On the cost front, raw material costs have remained high, especially imported raw materials which have been negatively impacted by the depreciation in the rupee. While major companies such as Hindustan Unilever Ltd and ITC Ltd have taken selective price hike measures, there has been a growing threat of increasing competition.