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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian Markets Trade in the Red
Mon, 11 Jan 11:30 am

After opening the day deep in the red, the Indian indices made some gains. However, they failed to inch enough upwards and continued to trade negatively. Most sectoral indices are trading on a discouraging note with stocks from the metal, banking, and capital goods sector witnessing maximum selling pressure.

The BSE Sensex is trading down 151 points (down 0.6%) and the NSE Nifty is trading down 52 points (down 0.7%). The BSE Mid Cap index is trading down by 0.8% and the BSE Small Cap index is trading down by 0.5%. The rupee is trading at 66.78 to the US$.

Stocks in the automobile space are trading mixed with Mahindra & Mahindra and Escorts leading the losses. As per a leading financial daily, Ashok Leyland has bagged an order for 680 vehicles and spare parts worth US$ 50 million from Zimbabwe. The company stated that the order is from the Ministry of Local Government, Public Works and National Housing, Government of Republic of Zimbabwe.

The company, in November last year, had won an order worth US$ 200 million from the West African country of Cote D'lvoire for supply of 3,600 trucks and buses.

On a separate note, Ashok Leyland had reported a 31.4% increase in its total sales at 12,209 units in December 2015 on a YoY basis. The sales of medium and heavy commercial vehicles jumped 35.3% to 9,758 units in December as against 7,210 in the same month a year ago. Light commercial vehicles sales grew 17.8% to 2,451 units as against 2,080 in December 2014.

Along with abovementioned impressive developments, the company is focusing its efforts on becoming a leaner company. Radhika Pandit Managing Editor ValuePro had stated in the result analysis of the company (subscription required) "The company has been focusing on reducing debt and in this regard it has been selling off non-core assets and also intends to go slow on capex for the next couple of years." Presently the stock of Ashok Leyland is trading up by 1.3%.

Most of the mining stocks are trading on a negative note with MMTC and Coal India leading the losses. As per an article in Economic Times, the mines ministry has proposed scrapping of export duty on iron ore to bolster the revenues of miners that have been hit due to weakening prices and competition from overseas firms. This recommendation to the finance minister follows the withdrawal the 10% export duty on iron ore.

The industry stated that high level of taxation along with fierce competition from international companies and low commodity prices; have hit the iron ore industry. For low-grade iron ore, the industry has been contending with taxes to the tune of over 40%. Most of these taxes were increased or levied during the past few years when the commodity prices higher. However, as the industry states, they are no longer viable in the current situation of low prices. Iron ore producers from Goa are bearing most of the brunt for this high level of taxation. For this, trade associations in Goa have urged Prime Minister Narendra Modi to withdraw export duty on low-grade iron ore.

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May 24, 2017 (Close)

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