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Asian markets ended the day on a negative note as of the most recent closing prices. Stock markets in Japan and Hong Kong closed lower by 1% and 0.2% respectively. At the time of writing, most of the European markets too were trading weak. Germany and France were trading down by 1.4% and 1% respectively.
Back home, Indian equity markets went on to extend their earlier losses and closed the day on a dull note. Stocks from IT, FMCG and capital goods spaces led the losses. The BSE-Sensex ended the day lower by 257 points (down 0.9%), while the NSE-Nifty ended lower by about 69 points (down 0.8%). The BSE Mid Cap ended lower by 0.5%, while the BSE Small cap closed marginally higher by 0.04%. The rupee was trading at 66.78 against the dollar at the time of writing.
Private sector lender HDFC Bank has cut its lending rate by 0.05%. This seems to be good news for its new borrowers. The bank reduced its one-month marginal cost lending rate (MCLR) to 8.95% from 9% and cut its two-year MCLR to 9.20% from 9.25% effective from 7 June 2016. MCLR is closely linked to the actual deposit rates. Moreover, ICICI Bank and SBI too had revised their one-year MCLR down by 5 basis points (bps) to 9.15%.
RBI had introduced the new base rate i.e. MCLR with the goal of passing on the benefits of its rate cuts to borrowers at a faster pace. However, the average lending rate has come down only by 30-35 bps in past two months. Reportedly, RBI will soon review the new lending regime announced in April this year. HDFC Bank ended the day lower by 0.2%.
India's prominent consumer goods manufacturer Dabur is gearing up to increase its presence in the e-commerce segment. As per an article in Economic Times, Dabur is already working with multiple partners across categories to sell its products online. Its wholly owned subsidiary, H&B Stores is also gearing up for DaburUveda.com to enhance its presence in e-commerce space.
Further, Dabur has also ventured in the Ayurveda space in order to tackle the threat emerging from Patanjali. Recently, the company tied up with online marketplace Snapdeal to set up an e-store for its Ayurveda products called LiveVEDA.
Online grocery shopping is gradually gaining traction and the company is likely to benefit from this growing trend. Having said that, most of the FMCG majors such as HUL, Patanjali have an online presence. Hence, the competitive intensity in this channel will be high. Dabur ended the day higher by 1.5%.
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