Stock Market: Aspirational India pumps shoes companies

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By S Jha

New Delhi, September 21: The Fed announcement tonight weighed high on the Indian equity market on Wednesday, swinging the bourses on both sides, with heavy profit booking noticed on the banking and cement sector.

The news that Gautam Adani has pledged all his shared of Ambuja Cement sunk the share if the company on the bourses on Wednesday.

The FMCG giant ITC, which The Raisina Hills had covered, recently remained firm in the weak market, going past Rs 340 mark. Its movement was in line with the FMCG companies such as Britannia, Dabur, Nestle all doing well on the bourses, as investors took cover with the defensive stocks amid the heated fear factor ahead of the Fed announcement.

The US Fed has said on occasions that it would firefight inflation, while there still remains no clarity if the price rise has peaked, as the Russian invasion of Ukraine still lingers on, sending the oil and gas prices on a firm trajectory.

But there is one segment that is having all the fun on the stock market. The shows manufacturers are rising high, as the aspirational India drivees the demands for the foot wears.

Liberty Shoes share gained over 11 per cent to rise to the level of Rs 215.50, while it has rallied about 30 per cent in one month. On June 20 this year, Liberty Shoes hit the low of Rs 127.70 and since then it has been climbing high.

Khadim, the manufacturers of affordable footwear, was also trading firm in the weak market on Wednesday, as the share gained a healthy 6.83 per cent.

Campus footwear, a recently listed company, continues to be on the dream run on the bourses, closing on the positive note again on a weak market on Wednesday.

After touching a low of Rs 309 on June 17 this year, Campus footwear has strongly rallied to rise to the level of Rs 579.90. It is commanding a PE of a whopping 142, while the company has a compounded sales and profit growth of past three years of 26 and 48 per cent respectively.

Mirza International, another contract manufacturer of international brand of shoes has equally been on a phenomenal run on the bourses. It had touched a low of Rs 60 in November last year, and within a span of 10 months it has zoomed to the level of Rs 350, nearly six times return.