Indian stock markets open firm

Wed, 29 Oct 09:30 am

   Previous Close   

   Pre-Open   

   11:30 am   

   01:30 pm   

   Closing   

The major Asian stock markets have opened the day in the green with the markets in Japan (up 1.6%) and Korea (up 1.7%) leading the gains. The Indian share markets have opened the day on a positive note. All sectoral indices are trading in the green with stocks in the realty and auto sector leading the gains.

The Sensex today is up by around 143 points (0.5%), while the NSE-Nifty is up by about 39 points (0.5%). The mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.5% and 0.8% respectively. The rupee is currently trading at Rs 61.26 to the US dollar.

Stocks in the consumer products segment have opened mainly in the green with Marico Ltd and Godrej Consumer Ltd leading the gains. However, Emami Ltd and Kokuyo Camlin were leading the losses. The FMCG major Nestle India Ltd has reported results for the quarter ended September 2014>https://www.equitymaster.com/research-it/company-info/latest-company-results.asp. Net sales for the quarter grew 8.9% year on year (YoY). Overall expenses for the quarter were up 8.8% YoY. The increase in the cost of material was mainly due to higher cost of milk and its derivatives in India. The net profit for the quarter grew 9.2% YoY. As per the management, despite subdued demand environment and cost pressure, focus on efficiency and cost containment program have enabled the company to deliver healthy margins. The management plans to continue rationalizing the product portfolio to eliminate low margins stock keeping units (SKUs) that are not in line with company's vision or growth strategy. The company has also declared a second interim dividend of Rs 30 per share for 2014.

Indian Pharma stocks have opened the day mainly in the green with Aurobindo Pharma Ltd and Cipla Ltd leading the gains. However, Biocon Ltd and Dr. Reddy's Laboratories Ltd were facing selling pressure. Ranbaxy Laboratories Ltd has reported results for the quarter ended September 2014. Total income for the quarter grew 16% YoY. The bottomline for the quarter stood at Rs 4.8 bn, as compared to a net loss of Rs 4.5 bn in the corresponding period last year. This was the first time in last six quarters that the company has posted a profit. This was mainly on account of strong business in India and West Europe; apart from gains from the launch of the generic version of Novartis AG's blood pressure drug Diovan in the US market. Consolidated sales for the quarter grew 17% YoY. Of this, sales from US accounted for 42% share, on account significant contribution from the exclusivity sales of Valsartan in the current quarter. The domestic market sales grew 12% YoY during the quarter. As per the management, India region witnessed growth of its prime segments within the branded business. The management expects to get exclusivity for AstraZeneca's Nexium (used for treating symptoms of gastroesophageal reflux disease and other conditions involving excessive stomach acid). It will launch the product in the US once it receives approval from the US Food and Drug Administration (FDA).