Indian stock markets weaken

Thu, 13 Dec 01:30 pm

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Selling pressures in index heavyweights saw the Indian stock markets slipping below the dotted line in the post noon trading session. Majority of the sectoral indices are trading positive with auto, banking and realty stocks being the biggest gainers. FMCG, consumer durable and capital goods are among the few stocks trading negative.

BSE-Sensex is down 39 points and NSE-Nifty is trading down marginally. Both BSE Mid Cap and BSE Small Cap indices are trading up by 0.2% each. The rupee is trading at 54.2 to the US dollar.

FMCG stocks are trading mixed with Henkel and Marico being the major gainers and Emami and Hindustan Unilever Limited (HUL) being among top losers. According to leading financial daily edible oil companies, in a bid to de-risk their commodity business and improve margins, are diversifying into fast moving consumer goods (FMCG). This move comes in the backdrop of a stringent Food Safety Act that is leading to a shift from loose to packaged food items. Sanwaria Agro has already expanded into salt & soya nuggets and is contemplating to enter ready-to-eat pasta in future. Ruchi Soya Industries is focusing on the margarine category with Nutrela table spread having zero cholesterol. Adani Wilmar is extending its product profile to include branded pulses, rice and spices and has also launched health products such as Fortune rice bran health oil. Kamani Oil Industries which has its Riso brand of rice bran oil wants to introduce more healthy edible oils such as Omega 3 oils in future.

Realty & construction stocks are trading mixed with PVP Ventures and Phoenix Mills being the biggest gainers and BL Kashyap and D S Kulkarni being the biggest losers. A leading business daily has reported that construction major IVRCL has entered new segments such as mining, railways and metro rail. It is also reported that the company is looking at increasing business from overseas. These moves are part of the IVRCL's strategy to de-risk itself on an overall basis. Over the past few quarters, the company has been facing tough times on accounts of delays, especially in the build, own transfer (BOT) space, for which it has shifted focus on the engineering, procurement and construction (EPC) business for the time being. At the end of the October 2012, the company's order book stood at Rs 264 bn. IVRCL stock is down 1.4%.