Market Report 7 July 2009
Fast moving consumer goods (FMCG) firm Marico spurted 12.68% to Rs 80.40. The scrip topped the gainers in the BSE's A group. FMCG shares rose today on hopes rural consumption spends will rise on the government's increased focus on rural economy.
Aiming on higher disposable income in rural India and inclusive growth, the government increased the allocation towards National Rural Employment Guarantee Scheme by 144% at Rs 39,100 crore in the Union Budget 2009-2010. Higher rural consumption may aid volume growth for fast moving consumer goods (FMCG) companies at large.
Air conditioner and refrigeration products maker Voltas soared 9.24% to Rs 130.05 on hopes it may see rise in demand for cold storage and refrigeration products after the Union Budget 2009-2010 included investment related incentives for developing cold storage infrastructure for moving agricultural produce. It was the second biggest gainer in 'A' group.
Construction firm IVRCL Infrastructure and Projects flared up 9.04% to Rs 360 after Transport Minister Kamal Nath said the government aims to attract $10 billion a year in overseas funding from a total $20 billion a year earmarked for building roads. It was the third biggest gainer in 'A' group.
Construction firm IRB Infrastructure Developers climbed 8.17% to Rs 174.10. It was the fourth biggest gainer in 'A' group.
India's largest lead acid storage battery manufacture by sales Exide Industries rose 7.96% to Rs 69.15. It was the fifth biggest gainer in 'A' group. There was no across-the-board increase in excise duties in Union Budget 2009-2010 after a sharp reduction in excise duties in two stages since December 2008 which was announced as a part of the government's stimulus package for the economy. A section of the market was fearing rollback of excise duties due to signs of a recovery in the Indian economy.