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The major Asian stock markets have opened the day on a mixed note. Stock markets in Japan and Indonesia are trading up by 0.3% and 0.4% respectively. However markets in Hong Kong and Singapore are trading down by 0.4% and 0.2% respectively. The major stock indices in Europe and US ended their previous session in green. The rupee is trading at 64.93 per US dollar.
Indian stock markets have opened the day on a flattish note. BSE-Sensex is trading higher by 7 points (up 0.03%) and NSE-Nifty is trading lower by 6 points (down 0.07%). However S&P BSE Midcap and S&P BSE Smallcap have open in green. Both the indices are trading higher by 0.4% and 0.3% respectively. Major sectoral indices have opened the day on a mixed note with stocks from pharmaceutical and engineering witnessing buying interest. However stocks in oil and gas and telecommunication sector are the leading losers in the pack
As per an article in Livemint, Gujarat and Karnataka government has lifted the ban on Nestle's 'Maggi' noodles on Monday. The ban was imposed after the Food Safety and Standards Authority of India (FSSAI) ordered the company to withdraw the 'Maggi' noodles from the market.Nestle, thereafter had appealed in the Bombay High Court revoke this ban. Recently, the Court ruled in the favour of the company. However it asked Nestle to retest the samples of 'Maggi' at the 'National Accreditation Board for Testing and Calibration Laboratories (NABL).
Recently, three laboratories certified by NABL stated that the product is safe and the lead content was much below the permissible limits. Nestle India's Maggi noodles had earlier cleared tests in various countries including the US, UK, Singapore and Australia. Post the clearance from these two governments, it is believed that other states too will lift the ban on the noodles.
In one of our edition of the 5 Minute Wrap up, we had discussed about this controversy, as the stock of Nestle had tanked post this ban. And here is what we had written, - "Even if product quality suffers in the interim but is associated with a strong brand, the good image in mind of individuals remains intact. In the end, it all boils down to investing in wide moat companies. Bigger the brand, wider the moat". Read on to this interesting piece, where we have discussed in detail on this.
As per the financial daily, Dabur India stated that its sales from the 'Real' brand may be impacted. The impact is on account of the ongoing political tension between India and Nepal.
Since, Dabur has one of its manufacturing facilities situated in Nepal. Due to the India-Nepal border blockade the company has been unable to import the products into India. This is expected to impact the sales of its 'Real' brand in India. However the company has not quantified the impact of the same on the sales number. Dabur has also ramped-up its production in its other manufacturing facility in India and Sri Lanka in order to mitigate the loss of sales from the manufacturing unit in Nepal. The stock is trading down by 0.4%
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