Sensex Trades On A Volatile Note; HCL Technologies & Bajaj Finance Top Losers
Share markets in India are presently trading on a volatile note, tracking mixed global cues as coronavirus cases continue to surge across the world.
Sectoral indices are trading on a mixed note with stocks in the IT sector and consumer durables sector witnessing most of the selling pressure.
Healthcare stocks, on the other hand, are witnessing buying interest.
The BSE Sensex is trading down by 108 points (down 0.3%), at 36,500 levels.
Meanwhile, the NSE Nifty is trading down by 25 points (down 0.2%).
The BSE Mid Cap index is trading up by 0.2%. The BSE Small Cap index is trading up by 0.4%.
Gold prices are currently trading down by 0.1% at Rs 48,749.
The rupee is trading at 75.01 against the US$.
Moving on, market participants are tracking chemical stocks today.
Shares of companies in the chemicals, commodities, and specialty chemicals space are witnessing buying interest today amid reports that the government is planning to offer tax incentives to promote 'Make in India' for the chemical sector.
Shares of Tamilnadu Petroproducts, IG Petrochemicals, Thirumalai Chemicals, Sudarshan Chemical Industries, Himadri Speciality Chemical, National Peroxide, GHCL, and Nocil are trading up in the range of 5-15%. These stocks had rallied up to 20% yesterday.
Meanwhile, shares of Navin Fluorine, Neogen Chemicals, and Ultramarine & Pigments hit their respective 52-week highs today.
As per media reports, the government is expected to offer tax incentives of 100% for the first five years while the same will be limited to 75% for the next five years and 50% for five years thereafter.
The government may also infuse capital between 10% and 20%.
Moving on to news from the FMCG sector, Hindustan Unilever (HUL) and Emami are among the top buzzing stocks today.
FMCG major HUL has got a temporary relief from the Bombay High Court after Emami was told to give HUL seven days of advance notice before initiating legal proceedings on its trademark "Glow and Handsome".
HUL moved the court after Emami said it would take legal action against the company as it already owns the "Emami Fair and Glow" brand.
HUL had recently dropped the word "fair" from its skin cream, replacing it with "Glow" Glow & Lovely for women and Glow & Handsome for men.
Justice BP Colabwalla, while hearing the HUL application filed under the Trade Marks Act, said that it appeared prima facie that HUL had applied for the trademark application in September 2018 and later on June 20 this year.
HUL in its application said the defendant should give it at least seven days prior written notice before initiating any legal proceedings in any court or claiming any interim relief against HUL as threatened in the statements made by Emami.
The court directed Emami to grant seven days to HUL before starting legal proceedings. The matter was further scheduled to July 27.
Earlier this month on July 2, Emami held a press conference accusing HUL of violating the trademark law. The company also said it would take legal action against HUL as it already owns the "Emami Glow and Handsome" skincare brand.
Note that this isn't the first time the two companies are at loggerheads over their men's personal care portfolio.
Last year, HUL filed a petition against Emami for disparaging its Fair & Lovely cream in a television commercial.
In a 2018 injunction order against HUL, Emami sought to restrain HUL from publishing a TVC for the Fair & Lovely Men's brand over claims that it intends to "demean, disparage or denigrate Emami's product, Fair and Handsome Fairness Cream for Men, thus, interfering into the direct goodwill and business loss for the company".
How this pans out remains to be seen. Meanwhile, we will keep you updated on the latest developments from this space.
Here's an interesting data of HUL, until 2013, the company had products and categories customized for the Indian market. That made it difficult for the company to sell its overseas products in the country. Nor could it reach out enough to a global customer base with Indian products.
A change of strategy suddenly opened up Unilever's global markets to HUL for both sourcing and selling.
The result was evident in profit growth and stock price over the next few years.
The stock of HUL Had the Crorepati Trigger in 2013
Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...
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