Wednesday, January 21, 2009

Sensex above 9000; HUL, Ranbaxy up

Mirroring negative global sentiment, Indian markets have started the day’s proceedings on a weak note. While stocks from the realty and banking space are leading the pack of losers, stocks from the FMCG space are currently finding favour with investors. The overall decline to advance ratio is poised at 1.3 to 1 on the BSE. As regards global markets, the US market and European markets ended in the red yesterday. The Asian indices too are currently in the red.

Hero Honda’s ‘heroic’ results:

Hero Honda announced its results yesterday. Its topline for 3QFY09 grew by 5% YoY despite a 4% drop in volumes. The operating profits grew by 7% YoY as margins expanded by 30 basis points during the quarter. This was made possible because of a less than proportionate increase in the company’s raw material costs as well as its other expenses. Also, a lower tax outgo helped boost profitability further and enabled the bottomline to grow by 9% YoY during the quarter. The company’s net profit growth for the nine month period was 31% YoY on the back of an 18% YoY growth in topline. Hero Honda is currently trading higher, while its peer Bajaj Auto is trading lower.


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