There is one thing that women are turning to in this gloomy time. It's pocket sized, red hot, and it's sales are going through the roof.

Given the state of the economy, no one's smiling these days but lipstick sales are hot.

The idea that lipstick sales go up as the economy goes down has been labelled 'the lipstick effect', and has gained the gravity of fact in western media.

But does this fable of the west ring true in India?

Umesh K Modi, Chairman & CEO of Modi Revlon, said, "Make up makes a women feel confident and happy, especially in times of gloom like now."

The lipstick effect seems to be playing out in Indian metros as well, since women throng to get a tiny splurge guaranteed to make them feel good. The other product graphs, however, head south.

This year, lipstick sales are growing steadily at 20 per cent and in the case of luxury brands that have a smaller base, extending even into the triple digits.

Hence, bolstered by the steady growth trend in the metros, companies are extending into new product lines.

Dinesh Dayal, COO of L'Oreal, said, "We are now branching into new products and are even introducing a line of make up for the masses."

The lipstick effect, it seems, has done its bit to bring a smile on women’s faces.