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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Power, metal stocks join the free fall 
(Tue, 20 Dec Closing) 
 
If yesterday it was banks and engineering, today power and metal joined the list of sectors that investors have chosen to dump. While other Asian markets were a mixed bag, benchmark indices in Indian stock markets led the pack of losers in Asia today. After a brief recovery, the BSE-Sensex closed near the day's lows by around 197 points (down 1.3%). The NSE-Nifty closed lower by around 69 points (down 1.5%). The BSE Mid Cap and BSE Small Cap indices also lost around 1.9% and 1.5% respectively. However, FMCG stocks managed to find some buyers.

As regards global markets, other Asian indices closed mixed today while the European indices have opened in the green. The rupee was trading at Rs 53.05 to the dollar at the time of writing.

Nestle India, a subsidiary of the Swiss major in food and beverages, is planning to invest nearly Rs 5 bn mainly on Maggie noodles and confectionery-manufacturing plant in Gujarat next year. As part of its aggressive business expansion policy in the western and eastern States by doubling capacities. Nestle has been on an expansion spree to capitalize on the growing demand. In the past three years, the company has spent Rs 9.7 bn on capacity expansion. Its capital expenditure during 9mCY11 stood at 9.1 bn. Nestle reported double-digit sales growth of 20% YoY led by consistent price-hikes and volume growth in 3QCY11. Domestic sales that constitute a lion's share of 96% grew by 20.7% during the quarter. Export turnover increased by 4.6% YoY.

The fall in cotton prices on the back of forecasts of 10% increase in production in the country bears well for textile and garment manufacturers in the country. The price of cotton has fallen from an all-time high of Rs 59,700 per candy of cotton by 43%. However, the key determinant for yarn offtake will be demand growth for readymade garments, which ultimately depends on the economic well-being of developed markets i.e. Europe and the US. Also, the depreciating rupee could boost export revenue, since volumes are likely to remain subdued. However, stocks like Arvind Ltd (closed up 1%) have managed to fetch some buying interest on the back of operating performance and the recent joint venture (JV) with the Germany based PD Fiber Glass Group for the manufacture of glass fabrics in India. The venture will cater to the requirements of a cross section of industries like automobiles, transportation, wind energy, aerospace, ship building and infrastructure.

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2 Responses to "Power, metal stocks join the free fall"

amil gupta

Feb 22, 2013

very gud and ease to get news

Like 

Sekhar

Dec 20, 2011

Thanks it is quite eye opening details

Like 
  
Equitymaster requests your view! Post a comment on "Power, metal stocks join the free fall". Click here!
 

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