Most of food stocks are trading in the positive led by Golden Tobacco Consumer and Sterling Biotech. Swiss FMCG major, Nestle expects emerging markets that include India and China to account for 50% of its global sales by the end of 2020. Currently, emerging markets account for 40% of Nestle's business. The company is upbeat about the long term potential of India and has been aggressively adding capacities to widen its product portfolio. Over the past five years, the company has spent Rs 28 bn in capital investments and in 2011 alone, investments crossed Rs 17 bn. The company will be inaugurating a global R&D centre at Manesar in Haryana. Reportedly, in 2011 Nestle clocked a turnover of 85 bn Swiss francs with contribution from India standing at 1.5 bn Swiss francs translating into less than 2% share. According to the company, innovation will drive growth in the developed markets whereas growing GDP and rising per capita income will be the growth driver in the emerging markets. Nestle stock is up 0.8%.
Majority of the large IT stocks are trading strong with Tech Mahindra and Mahindra Satyam being the biggest gainers. Gujarat Gas has announced results for the quarter ended September 2012. The company has reported a 29% year on year (YoY) growth in the topline during the quarter on account of better realizations on gas sales and sustained growth in certain market segments. During the quarter, more than 5,400 vehicles were converted to compressed natural gas (CNG) gas. In the piped natural gas segment (CNG), more than 7,000 households were connected to gas supply during the quarter. The net profits for the quarter registered a 24% YoY due to higher realizations on gas sales. As per the management, the company has optimized its gas sourcing portfolio. Currently, the company sources around 47% from imported LNG. Going forward, the management plans to focus on optimizing operating costs and building more gas pipelines and IT infrastructure for growth.