After opening in the green, the Indian Indices have added to the early gains and are trading well above the dotted line currently. Consumer durables and capital goods stocks are leading the gainers. Mid and small cap stocks too are witnessing buying interest.
Automobile stocks are all trading in the green except Bajaj Auto and Hero Motocorp. According to a leading financial daily, India's largest automaker by revenue, Tata Motors is looking to recover some of the cost incurred on the Nano platform. The plan is to develop a slightly bigger hatchback at the Sanand factory, to take on Maruti Suzuki's Alto, India's top-selling car. To gain from economies of scale, the 'Pelican' will be manufactured at the Sanand factory, along with the Nano. The plant, which has an annual production capacity of 250,000 units - about 20,000 a month - is currently manufacturing only about 1,300 Nanos a month, given an extremely low demand for the car. Tata Motors' overall domestic passenger vehicle sales, in volume terms, have declined sharply over the past few years. During the April-December period of this financial year, these fell 11% on a year-on-year basis to 92,227 units.
Mining stocks are currently trading in the green. As per a leading business daily, manganese mining major MOIL's production is expected to double to 0.1 m tonnes a year. This comes on the back of the inauguration of a new vertical shaft at its Mansar mine.