FMCG: FMGC stocks
witnessed good buying
momentum this week. The stocks moved up on the
expectation of improved sales due to increase
in
demand for the consumer goods particularly
from
the rural sector after good monsoon and
agricultural
output. The industry expected to grow at
12-15%
CAGR considering better expectations of sales
and
improved operating margins. The BSE-FMCG index
surged 3.78% this week.
Hotel: Hotel stocks
surged up after the government
approved the projects of 70 new hotels across
the
country. The recent hike in the room rates by
the
industry players would further improve their
bottomline which is expected to grow at an
average
of 30%-35% annually.
Metals: Steel stocks
surged up this week on the
expectation of rising domestic steel prices on
the back
of the increasing international steel demand
due to
Katrina effect. With the global steel supply
remaining
constant, the temporary supply-demand mismatch
is
likely to push the global steel prices
northwards. The
effect was already felt this with BSE metal
index closing
5.43% higher than the previous week.