No sign of relief is being seen, as Index continues its stage of correction for the recent week. Post the sheer correction, even bargain-hunting trade close to the intermediate ground of about 11,460 also was not successful to materialize in any short covering. The latest correlation between Indian Nifty50 and VIX is typically depressing. But, it turned affirmative since both fallen by about 2% and 8%, respectively, on a week-on-week basis. According to the experts, this divergence is a bad sign.
In the existing phase of correction, mostly all the major sectoral indices were seen failed to offer any comfort to the bulls. The distrustful set of an index including Nifty IT also has dropped by about 4.50% since the starting of the month. In the present scenario, on the stock front, experts recommend investment in Berger Paint and Colgate Palmolive. They expect upside in tune of about 5% and more.
On a related note, Colgate-Palmolive recently disclosed that it would purchase the skincare section of France’s Laboratoires Filorga Cosmétiques. Reportedly, this deal is finalized for about $1.69 Billion. The latest deal holds significance as the consumer goods firm aims to bolster its personal care business. The anti-aging skincare products by Filorga are popular and are sold in more than 60 countries, with its biggest markets being Italy, France, Greater China, and Spain.
Noel Wallace, Chief Executive Officer, Colgate-Palmolive, proclaimed that the latest acquisition also offers Colgate entry into the fast-developing and large retail channel, mainly in Asia. Colgate is famous mainly for its dental-care products. The firm is looking to enlarge its existence in the high-margin personal care business. In 2017, the firm had purchased skin-care brands such as PCA Skin and EltaMD. The Filorga transaction is supposed to be supported with a combination of cash and debt and is presently expected to close in the 3rd quarter.