FMCG stocks on a roll

Key benchmark indices pared gains in morning trade as index heavyweight Reliance Industries (RIL) reversed initial gains. The CNX Nifty fell below the psychological 6,000 mark after regaining that level in early trade. The barometer index, the BSE Sensex, was up 79.71 points or 0.4%, off 30.59 points from the day's high and up 56.37 points from the day's low. The market breadth, indicating the overall health of the market, was positive.

Software major TCS was slightly higher ahead of its Q1 June 2013 results today, 18 July 2013. FMCG stocks extended Wednesday's gains as a bountiful rainfall this year has prepared the ground for bumper harvest. Shares of Hindustan Unilever, ITC, Dabur India and Godrej Consumer Products and United Spirits scaled record highs. Shares of Nestle India reversed direction after striking record high. In the pharma pack, Lupin hit record high. Shares of liquor major United Spirits hit record high.

Key benchmark indices edged higher in early trade on mostly higher Asian stocks. The Sensex moved past the psychological 20,000 mark. The CNX Nifty hit the psychological 6,000 mark. Key benchmark indices pared gains in morning trade. The Nifty fell below the psychological 6,000 mark.

Foreign institutional investors (FIIs) sold shares worth a net Rs 26.09 crore on Wednesday, 17 July 2013, as per provisional data from the stock exchanges.

At 10:16 IST, the S&P BSE Sensex was up 79.71 points or 0.4% to 20,028.44. The index gained 110.30 points at the day's high of 20,059.03 in early trade, its highest level since 15 July 2013. The index rose 23.34 points at the day's low of 19,972.07 in early trade.

The CNX Nifty was up 18.90 points or 0.32% to 5,992.20. The index hit a high of 6,005.60 in intraday trade. The index hit a low of 5,982 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 696 shares gained and 498 shares fell. A total of 57 shares were unchanged.

The total turnover on BSE amounted to Rs 396 crore by 10:20 IST compared to Rs 161 crore by 09:30 IST.

Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.

Index heavyweight Reliance Industries (RIL) shed 0.46% at Rs 910.90, off day's high of Rs 919.90. The Cabinet Committee on Economic Affairs (CCEA) on 27 June 2013 approved new gas pricing formula from 1 April 2014. The price of gas as per the formula is likely to be about $8.4 mmBtu as opposed to $4.2 mmBtu currently.

Software major TCS rose 0.2% ahead of its Q1 June 2013 results today, 18 July 2013.

FMCG stocks extended recent gains as a bountiful rainfall this year has prepared the ground for bumper harvest. India's monsoon is so far progressing well across the country and if the rains continue as expected, this could boost rural incomes. FMCG companies derive substantial revenue from rural India.

Shares of FMCG major Hindustan Unilever advanced 2.34% to Rs 700.85 after scaling a record high of Rs 718 in intraday trade today, 18 July 2013. The stock has gained has surged recently on reports that the company has raised prices of several personal care products.

HUL's parent Unilever PLC on 11 July 2013 said that pursuant to the voluntary open offer to increase its stake in HUL, the shareholders of HUL tendered a total of 31.99 crore shares, out of which 31.95 crore shares have been accepted by Unilever PLC on completion of the verification of the shares tendered. Based on the shares tendered which represent 14.78% of HUL, the Unilever Group will increase its stake in HUL from 52.48% to 67.26%.

Index heavyweight and cigarette major ITC rose 0.15% to Rs 368.90 after striking a record high of Rs 370.80 in intraday trade today, 18 July 2013. The company announces Q1 results on 25 July 2013.

Dabur India gained 2.47% to Rs 169.90 after hitting a record high of Rs 171.75 in intraday trade today, 18 July 2013.

Nestle India shed 0.74% to Rs 5,710. The stock reversed direction after striking a record high of Rs 5,799.70 in intraday trade today, 18 July 2013.

Godrej Consumer Products jumped 7.3% to Rs 965 after striking a record high of Rs 977.40 in intraday trade today, 18 July 2013.

Colgate-Palmolive (India) (up 0.28%) and Marico (up 0.62%) gained.

United Spirits rose 1.47% to Rs 2,742 after striking a record high of Rs 2,749 in intraday trade today, 18 July 2013.

Heritage Foods (India) jumped 5.43% after the company after market hours on Wednesday, 17 July 2013 said its board of directors has approved a liberal 1:1 bonus issue. The record date for the bonus issue is set as 29 July 2013. Heritage Foods (India)'s consolidated net profit jumped 73.6% to Rs 14.67 crore on 4.7% growth in net sales to Rs 427.39 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Wednesday, 17 July 2013.

Lupin advanced 2.62% to Rs 896.20 after hitting a record high of Rs 897.70 in intraday trade today, 18 July 2013.

The Reserve Bank of India on Wednesday, 17 July 2013, said it has decided to conduct a special 3-day repo at an interest rate of 10.25% for a notified amount of Rs 25000 crore with a view to enabling banks to meet the liquidity requirements of mutual funds. This facility will be made available for a temporary period until further notice, RBI said.

Asian markets were mostly higher on Thursday, 18 July 2013, after Federal Reserve Chairman Ben Bernanke on Wednesday, 17 July 2013, said Fed's asset purchases "are by no means on a preset course" and could even be expanded should economic conditions warrant. Key benchmark indices in Hong Kong, Japan, Taiwan and Indonesia were up 0.02% to 0.77%. Key benchmark indices in China, Singapore and South Korea were down 0.52% to 0.82%.

Chinese Finance Minister Lou Jiwei on Wednesday, 17 July 2013, said that the government is unlikely to use massive fiscal stimulus this year.

Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Thursday, 18 July 2013. US stocks ticked higher on Wednesday, 17 July 2013, after the Federal Reserve Chairman Ben Bernanke said the central bank's monthly bond purchases weren't on a "pre-set course" and could be curbed or extended, depending on economic conditions. In prepared testimony to the House Financial Services Committee, Bernanke said that there is no set timetable for slowing US monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.

The Fed chief is due to speak before the Senate later on Thursday, 18 July 2013.

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