Asian markets have started the day on a firm note. However, the gains are not very significant. Investors appear to be trading cautiously in anticipation of the Chinese economic data on inflation, industrial output and retail sales. Indian markets have opened on a positive note. Currently, stocks from auto and pharma sectors are leading the pack of gainers.
The BSE-Sensex is trading higher by around 51 points (0.2%), while the NSE-Nifty is higher by about 19 points (0.3%). Mid and small cap stocks are trading in the green with the BSE-Midcap and BSE-Smallcap indices having opened on a positive note and trading higher by around 0.5% and 0.6% respectively. The rupee is trading at 44.26 to the US dollar.
Britannia Industries declared its results yesterday. The company's sales grew by 28% during the quarter as compared to the same period last year. The growth was fuelled by an increase in volumes as well as an increase in realized prices. Britannia had increased its prices by almost 25% across all its food categories. However, higher raw material costs proved a dampener and the net profits were down by 39% YoY during the quarter.
Going forward the company will be focusing on improving operational efficiency to contain costs. It also plans to adopt a better sales mix to improve its margins. The company has been facing intense competition from its peers Parle and ITC Foods. The stock is currently trading in the red. Other stocks in the foods space are also trading in the red, led by GSK Consumers and Nestle.
Opto Circuits declared its results yesterday. The company's net sales were up by 30% YoY. Top line growth was fueled by both the invasive as well as the non-invasive segments. Net profits during the quarter were up by 16% YoY. Going forward, the management expects growth to come mainly from their focus on the emerging markets. The company has also stated that it plans to acquire a US based cardiology device maker, Cardiac Science Corporation. The cost of acquisition is estimated to be around US$ 85 m. Both the companies are targeting a merger date close to the end of the 4th quarter of FY10.