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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian share markets remain weak 
(Thu, 30 Aug 01:30 pm) 
 
Despite recovering some losses, Indian share markets continued to remain in negative territory in the last two trading hours. Majority of the sectoral indices are trading negative with capital goods, Oil and gas and metal stocks leading the pack of losers. Only realty, pharma and FMCG stocks are trading in green.

BSE-Sensex is down 34 points and NSE-Nifty is trading down 7 points. BSE Mid Cap is down 0.2% and BSE Small Cap index is marginally down. The rupee is trading at 55.6 to the US dollar.

Majority of large IT stocks are trading in red with Tech Mahindra and Mahindra Satyam leading the pack of losers. As per a leading financial daily, Infosys is focusing on acquiring more business from the government and private sectors in the country to raise its domestic sales to USD 1 bn over the next four years. Reportedly, the company's domestic operations contribute a miniscule 2% to its overall revenues. Currently, the government sector contributes the lion's share of 70% to Infosys' India business with the balance coming from the private sector. The company is targeting at getting equal share of business from both the sectors. According to the company financial inclusion, smart grid metering and public finances are potential growth drivers in the country. Infosys has bagged orders valued at Rs 20 bn and has bid for orders worth Rs 10 bn from various institutions in India. The company recently won an IT outsourcing and consulting deal with India Post and another deal from the Income Tax Department for its electronic TDS division. Infosys stock is marginally down.

As per the World Gold Council (WGC), India consumed 125 tonnes of gold jewellery in the June 2012 quarter which is more than the annual consumption of the entire US market. Although this points out to the huge potential in the Indian market for gold jewellery, a study conducted by WGC shows that 80% of the Indian women consider gold as a financial investment. The study also pointed out that Indians are more comfortable buying gold jewellery from family-owned brands. However, unfazed by this Gitanjali Group is introducing new designs and has adopted the distribution techniques of the FMCG sector to increase presence. Currently, the Group's brands are present at 3,000 of the estimated 5,00,000 jewellers in the country. WGC recently launched its Azva brand of wedding jewellery collection targeted at modern Indian couples. But the country's biggest branded jewellery retailer, Titan Industries (Tanishq brand) is trying to shift focus towards diamond jewellery due to rapidly rising price of gold. The company has launched affordable diamond jewelley targeted for different age-groups. The company wants to increase share of diamond jewellery sales from the current 28% to 40% of overall sales over the next five yaers. Titan Industries stock is marginally down.

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