Market Analysis: Review on Wednesday, Dec 8

Written by: Abdul Nisar
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BSE Sensex
Mumbai, Dec 9: BSE Sensex lost 238 points and closed at 19,696 on Wdnesday, Dec 8. NSE Nifty lost 72 points and closed at 5903. All the BSE sector indices closed in red. BSE Consumer Durable and Realty indices were down by 3 percent and 2.5 percent respectively.

Consumer Durable firms set up investments

Consumer durable companies are stepping up investments in production and distribution to cash in on the demand the industry is witnessing. The Rs 25,000-crore consumer durable industry is slated to grow at a rate of 17-18 percent over the next five years, to touch Rs 60,000 crore.

Already, the festive period, stretching from Jul to Nov, has been a good one for most consumer durable companies. Sales growth was in excess of 30 percent compared to last year when it was just half of that.

Peugeot eyes sites in Andhra Pradesh

PSA Peugeot Citroen ( A French carmaker) has surveyed two sites in Andhra Pradesh to set up a manufacturing facility. As per state government official Peugeot officials surveyed two sites one near Sri City in Chittoor district and another near Sitarampet in Ranga Reddy district.

The company is expected to invest about Rs 10,000 crore, including Rs 1,500 crore in the first phase, in the facility. The manufacturing unit could provide employment to more than 10,000 people.

The carmaker had sought slew of incentives including 900 acres land, Rs 600-crore interest-free loan, 100 percent value added tax (VAT) reimbursement for 21 years and physical infrastructure like roads, power and water and others.

ITC eyes acquisition in paper sector

ITC is eying an acquisition for its Paperboards and Speaciality Papers division to add capacity to its paper production, with some of its brown-field expansion plans getting delayed due to land acquisition problems and other issues, including Government. The Company is looking at acquisitions, especially units above one lakh tonne capacity, located in the northern and eastern States, as its existing units are predominantly southern-based.

The acquisition will form part of the Rs 4,000-crore expansion plans lined up by ITC's paperboard and specialty papers division for the next two-to-three years to add a capacity of over four lakh tonne to its existing capacity of 5.7 lakh tonne annually through its existing four units.


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