Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

The bear grip continues
Mon, 19 Dec 01:30 pm

Weakness in the Indian stock markets continued over the last two hours of trade. Barring FMCG, all the sectors are trading in the red. Stocks in banking, consumer durables and realty have witnessed the steepest fall.

The BSE-Sensex is down by 209 points, while the NSE-Nifty is down 74 points. BSE Mid Cap index and the BSE Small Cap index are down by 2.25% and 2.59% respectively. The rupee is trading at 52.95 to the US dollar.

Banking stocks are trading in the red led by Allahabad Bank and Andhra Bank. As per a leading financial daily, State Bank of India (SBI) has given a guidance of 16% -18% for the credit growth in the current fiscal. As per the management, the bank has registered some increase in the credit growth in the months of October and November and expects the trend to continue. It does not expect sharp increase in net non performing assets (NPA) that has already seen the levels of 2.1%. Regarding recoveries, the bank may sell some of NPAs to asset restructuring companies (ARCs) or coordinate with other banks to resolve the issues. The management is very aggressively working on this by persuading companies to sell off their non-core assets to reduce gearing and is taking recourse to legal measures. The management has said that while recoveries in agricultural sector have improved, there a lot of sectors under stress currently such as aviation, textile and steel some power distribution companies. The management does not expect interest rate cycle to reverse till inflation falls back to 7% and expects capital infusion by the end of the December or latest by end of March 31, 2012. The stock was trading in the red.

Food and tobacco stocks are mainly trading in the red led by Lakshmi Energy and Foods and Tata Coffee. The market of premium cream biscuits is heating up with the entry of new players ITC (Sunfeast) and Kraft Foods (Oreo). According to AC Nielsen data, the combined value share of Britannia Industries' premium cream biscuits portfolio declined by 3.3% to 14.7% during January-September 2011. During the same time, Oreo and Sunfeast brands garnered shares of 6% and 10.5% respectively. As per news reports, largest biscuit manufacturer, Parle Products is planning to enter the premium cream segment which will further intensify competition. As per a leading financial daily, Britannia has merged the sales team of its dairy business with that of its established biscuit business. The development is seen as a move to gain distribution synergies and expand the reach of dairy products which constitute a mere 5% of overall sales. Reportedly, the company has started selling bread using cycle-rickshaws in Delhi to increase reach. The merger is also being viewed as a strategic one in the backdrop of biscuit manufacturer battling low margins due to input cost pressures.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "The bear grip continues". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 22, 2018 (Close)