FMCG stocks in focus: HUL, Britannia, Nestle India hit new highs Shares of fast moving consumer goods (FMCG) companies such as Hindustan Unilever (HUL), Britannia Industries, Nestle India and Jubilant FoodWorks have hit their respective new highs on the BSE on expectation of good profit growth. Thus far in the month of April, all these four stocks have outperformed the market by gaining in the range of 8% to 9% on the BSE. On comparison, the S&P BSE Sensex and S&P BSE FMCG index were up 4% and 5%, respectively. READ MORE Favourable monsoon forecast may have limited impact on markets: here's why The S&P BSE Sensex has given average returns of 29.75 per cent during below-normal rainfall years – those in which rainfall is at least 10 per cent short of the long-period average (LPA), according to the India Meteorological Department. The Sensex was up 13.08 per cent in 2004, when rainfall fell 13 per cent of the LPA. It rebounded 81.03 per cent in 2009 after the global financial crises, when rainfall fell short by 22 per cent. It again rose 29.89 per cent in 2014, when rains fell short by 12 per cent. The only exception was 2015, when the index fell 5.03 per cent, even as rainfall fell 14 per cent short. READ MORE Monsoon. (Photo: Shutterstock) Banking sector preview Q4FY18: HDFC and IndusInd banks remain top picks Banking stocks had a roller coaster ride over the last few months. Cases of fraud have changed the way banking sector was looked at. While the fraud related cases are restricted to a few banks as of now, the fear that more issues could come up has made investors looking at the true book value of banks in a more prudent way. The biggest question is, what is the true book value of banks adjusting for all the stressed assets? While the sector was already struggling with the above issues the rising bond created further trouble. However, the regulators’ last move of allowing banks to amortize MTM losses on bonds over four quarters brings in some relief. The move could leave banks with relatively higher income which could be used for providing bad assets that might come up during the quarter. While this comes as a near-term relief the bond yields in India is unlikely to soften further in the coming months. READ MORE Market Check S&P BSE Sensex 34,337.76 0.09% Nifty 50 10,531.45 0.03% S&P BSE 200 4,631.68 0.09% Nifty 500 9,316.10 0.05% S&P BSE Mid-Cap 16,746.79 0.07% S&P BSE Small-Cap 18,126.06 0.24% Volume Toppers COMPANY PRICE() CHG() CHG(%) VOLUME IDEA CELLULAR 71.80 0.55 0.77 43518548 REL. COMM. 21.15 0.05 0.24 4594105 ADITYA BIR. FAS. 150.50 2.10 1.42 2223034 JP ASSOCIATES 19.45 -0.25 -1.27 2106090 POWER GRID CORPN 204.95 5.90 2.96 1979171 Will Reliance Industries' quarterly profit scale past Rs 100 billion? Textiles to telecom conglomerate, Reliance Industries (RIL) is expected to post its best-ever quarterly consolidated net profit, with the figure expected to be close to Rs 100 billion mark. The strong quarterly expectations are on the back of its petrochemicals segment performance. In addition, retail and telecom are likely to help the company’s March 2018 quarter (Q4) performance. “The petrochemicals segment is expected to do better due to healthy deltas and strong volume growth,” said analysts at Motilal Oswal Securities, which estimates RIL to clock a net profit of Rs 95.40 billion in Q4. READ MORE
The domestic indices were trading in a range on Tuesday, taking cues from their global counterparts.
Among sectoral indices, the Nifty Realty index was over 1% higher led by a rise in the shares of Godrej Properties and Indiabulls Real Estate.
That apart, investor sentiments are likely to be positive during the day following the forecast of a normal monsoon this year by the India Meteorological Department (IMD).
Releasing its first forecast for the southwest monsoon, the IMD said rainfall in June-September was projected at 97 per cent of the long period average (LPA), with a model error of plus and minus 5 per cent.
GLOBAL MARKETS
Asia stocks rose modestly on Tuesday following data showing China's economy grew a little faster than expected in the first quarter.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.05 per cent. South Korea's KOSPI dipped 0.1 per cent and Hong Kong's Hang Seng gained 0.15 per cent. Shanghai rose 0.15 per cent and Japan's Nikkei was flat.
(with Reuters inputs)