Strong buying activity in index heavyweights helped the benchmark indices gather momentum in the previous two hours of trade. Buying interest is particularly seen in stocks from realty and banking sectors. However, stocks from FMCG and IT sectors have failed to elicit sufficient investor interest.
The BSE Sensex and the NSE Nifty are currently trading higher by around 70 points and 18 points respectively. Stocks from the midcap and smallcap space are also trading in the positive with the BSE MidCap and the BSE SmallCap indices trading higher by 1.1% and 1.0% respectively.
Stocks from the financial sector continue to trade firm lead by IDFC, PFC and HDFC. HDFC, the largest mortgage lending entity in the country has announced a dual rate home loan scheme. Under the scheme, a borrower will be charged a fixed rate of interest upto March 2012 and a floating rate thereafter. This offer is applicable to all new home loan customers who apply before January 31, 2010, and take at least part disbursement before March 31, 2010.
This scheme is expected to help HDFC regain its market share which it had been losing in the last one year. At the same time, we believe that the housing finance company's margins may take a hit in the medium term. Particularly so, because the institution's cost of funds may go up in the near term as it does not have low cost deposits like banks.
The BSE FMCG index has been trading in the red since the start of the session today. The index has been weighed down by heavyweights like ITC and HUL. According to a leading daily, P&G will be launching a mass market detergent this week. This bodes ill for HUL. The latter has been steadily losing market share in this category to regional players and with P&G entering this category, competition is likely to heat up. Moreover, P&G will be launching a mid premium brand fairness cream priced at the same level as HUL's Ponds portfolio.
With P&G getting aggressive, HUL is expected to step up its advertisement and promotion spending for brand building. Given the history of price wars between P&G and HUL, we believe that this is likely to hurt HUL's profitability.
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What else is happening in the markets today? Dig in...
The BSE Sensex is trading up by 477 points, while the NSE Nifty is trading up by 135 points.
SIEMENS share price has hit an all time high at Rs 1,922 (up 1.7%). The BSE CAPITAL GOODS Index is up by 0.5%. Among the top gainers in the BSE CAPITAL GOODS Index today are SIEMENS (up 1.7%) and HONEYWELL AUTOMATION (up 1.9%). The top losers include HAVELLS INDIA (down 0.2%) and GRAPHITE INDIA (down 0.2%).
MUTHOOT FINANCE share price is trading down by 6% and its current market price is Rs 1,315. The BSE 500 is up by 0.5%. The top gainers in the BSE 500 Index are INDIAN OVERSEAS BANK (up 10.0%) and BANK OF MAHARASHTRA (up 10.0%). The top losers are MUTHOOT FINANCE (down 5.8%) and HIMADRI SPECIALITY CHEMICAL (down 5.4%).
ZENSAR TECHNOLOGIES share price has hit a 52-week high. It is presently trading at Rs 282. BSE 500 Index is up by 0.5% at 19,684. Within the BSE 500, ZENSAR TECHNOLOGIES (up 5.3%) and NAVA BHARAT VENTURES (up 11.2%) are among the top gainers, while top losers are MAGMA FINCORP and RELIANCE POWER.
BSE Sensex is trading up by 226 points, while the NSE Nifty is trading up by 113 points.
OMAXE share price is trading down by 6% and its current market price is Rs 72. The BSE REALTY is up by 0.5%. The top gainers in the BSE REALTY Index are PRESTIGE ESTATES (up 1.9%) and DLF (up 1.9%). The top losers is OMAXE (down 5.8%)..
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