Benchmark indices in India have opened in green with positive global cues backing them on Thursday. The markets had closed Wednesday with record gains mainly powered by auto stocks. Markets will watch the Wholesale Price Inflation, trade balance and export import data to be released later in the day. Companies, including Century Textiles & Industries, Cyient, Den Networks, HCL Technologies, and Indibulls Real Estate will be releasing their September quarter results today. Global markets will be watching earnings reports of Morgan Stanley and Citigroup Inc. Data on US initial jobless claims, PPI will also be watched. Positive results of Infosys and Wipro have helped the firms start well on the markets. Indian markets will be closed on Friday for Dussehra.
Nifty sectoral indices
The day started led by IT. Metals, PSU banks, and realty joined in supporting the market. In the latter half of the day financial services, banks, private banks, media have pushed the market further. Auto was the sole drag throughout.
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Sensex, Nifty at 03:06 pm
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Consumer durables review: Axis Securities
Growth recovering, Higher RM costs impact margins
Demand improvement leads revenue growth: Business sentiments have improved with economic unlocking and increasing vaccination. Demand across categories have been witnessing strong traction with the re-opening of markets and retails outlets along with permission for more hours for operations. Distributors and channel partners are stocking up to capitalize on this recovery and strong demand expected in the upcoming festive season.
Healthy overall demand scenario: Demand recovery was seen during the quarter post unlocking. Our channel checks indicated strong demand in July 2021 (esp. RAC’s) due to the extended summer in North India and a demand uptick during the Onam festival in South India. Dealer check indicated that demand across categories such as ACs, TVs, Washing Machines, Refrigerators, C&Ws, and other FMEG goods witnessed an uptick despite price hikes during the past two quarters. However, it believes further price hikes may impact demand recovery moving ahead. We expect that the industry won’t undertake any further price hikes to maintain prevailing demand buoyancy.
Key points to monitor: We would watch out for management commentaries on a) Sustainability of product demand, b) Price hikes taken by the companies to pass on the increased RM cost, c) Market share gains vs. unorganized players (for Polycab India and Sheela Foam), especially in light of unorganized players becoming active again, d)…
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