Markets continue to trade in high spirit in late afternoon session

Indian equity benchmarks continued to trade in high spirit in late afternoon session, on account of broad based buying in blue chip counters amid positive global cues. Sentiments remained upbeat after infrastructure sector recorded a growth rate of 5 per cent in September, the highest in three months on account of healthy performance by cement, steel and refinery products. Nikkei India Manufacturing Purchasing Managers' Index (PMI) has climbed to a 22-month peak in October 2016 too supported sentiments on the domestic bourses. However, investors remained cautious with the US Federal Reserve is expecting to keep interest rates unchanged on Wednesday but set the stage for a hike in December amid signs the economy is picking up steam.

On the global front, European stocks were trading higher on Tuesday, with resource stocks outperforming, after twin manufacturing PMI surveys from China added to recent signs that the world's second-biggest economy is stabilizing.

The BSE Sensex is currently trading at 28024.95, up by 94.74 points or 0.34% after trading in a range of 27872.15 and 28029.80. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.45%, while Small cap index was up by 0.24%.

The top gaining sectoral indices on the BSE were Metal up by 3.82%, Power up by 1.64%, PSU up by 0.72%, Auto up by 0.51%, Oil & Gas up by 0.27%, while Consumer Durables down by 0.86%, IT down by 0.60%, TECK down by 0.45%, Realty down by 0.25%, FMCG down by 0.13% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 4.41%, HDFC up by 3.41%, NTPC up by 3.07%, Power Grid up by 2.09% and Mahindra & Mahindra up by 0.91%. On the flip side, Axis Bank down by 1.52%, Sun Pharma down by 1.10%, TCS down by 0.86%, Infosys down by 0.85% and Cipla down by 0.75% were the top losers.

Meanwhile, a joint study of industry body Associated Chambers of Commerce and Industry of India (Assocham) and TechSci Research, has said that Indian fast-moving consumer goods (FMCG) firms have performed considerably good vis-a-vis the multinational companies (MNC) in India during 2015-2016. According to the study, during the FY16, the combined overall revenue of selected eight MNCs registered a total of $9436.66 million, whereas selected seven Indian FMCG registered a total of $11066.46 Million.

The study has observed performance analysis of selected Indian FMCG companies, during 2015-16 the highest profit after tax (PAT) margin is recorded at 25.48% by ITC as comparative to Procter & Gamble Hygiene & Health Care among selected leading MNC players in FMCG sector in India, which recorded the highest PAT margin at 17.03%. As per the joint study, Britannia Industries stood second among firms in terms of revenue of $1,222.75 million during 2015-16 and has registered revenue growth of 10.76% as compared to 2014-15. However, its PAT margin stood at 9.43%, which is comparatively lower than its peers in the sector.

The report also noted that the performance of Dabur India is next to ITC in terms of PAT registered at 16.34%, followed by Godrej Consumer Products at 15.37%. About the performance of Amul, although the company has revenue $743.69 million, which is slightly more than Godrej Consumer Products, its PAT margin is least amongst others at just 0.32%. In case of Amul, the reason can be the fact of controlled prices and nature of milk and milk-made products.

After analyzing the performance of selected multinational companies of FMCG sector in India, the study has stated that Hindustan Unilever is leading with its revenue of $4,921.10 million with 3.84% year-on-year growth in the revenue. However, the PAT margin of the company during the year is $628.06 million or 12.76%, which is comparatively lower than its competitor.

The CNX Nifty is currently trading at 8667.90, up by 42.20 points or 0.49% after trading in a range of 8614.50 and 8669.60. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 6.41%, Eicher Motors up by 4.58%, Tata Steel up by 4.42%, HDFC up by 3.62% and NTPC up by 3.28%. On the flip side, Axis Bank down by 1.51%, Tech Mahindra down by 1.30%, Kotak Mahindra Bank down by 1.23%, Sun Pharma down by 1.13% and Cipla down by 1.01% were the top losers.

Asian  market were trading mostly in green; FTSE Bursa Malaysia KLCI was up by 0.32 points or 0.02% to 1,672.78, Nikkei 225 increased 17.38 points or 0.1% to 17,442.40, Shanghai Composite jumped 21.94 points or 0.71% to 3,122.44 and Hang Seng climbed 212.53 points or 0.93% to 23,147.07.

On the other hand, Taiwan Weighted decreased 17.42 points or 0.19% to 9,272.70, Jakarta Composite was down by 2.43 points or 0.04% to 5,420.11 and KOSPI Index decreased 0.8 points or 0.04% to 2,007.39.

European markets were trading in green; France’s CAC increased 19.92 points or 0.44% to 4,529.18, UK’s FTSE 100 climbed 32.95 points or 0.47% to 6,987.17 and Germany’s DAX rose 48.08 points or 0.45% to 10,713.09.