The Indian markets steadily slipped deep into the negative territory on account of sustained selling activity during the previous two hours of trade. Although selling is being witnessed across sectors, chief among the losers are stocks from the metal, IT, oil & gas and pharma sectors.
While the BSE Sensex is trading lower by 200 points, the NSE Nifty is down 65 points. Midcap and small cap stocks too are seeing profit booking with losses of about 0.7% and 0.4% respectively.
Auto major Maruti Suzuki has recorded a robust 33% YoY increase in sales volumes in the month of January 2010. The company’s domestic sales rose 21% YoY during the month to 81,000 vehicles, while its exports rose an impressive 300% to more than 14,500 vehicles. This brought its total sales number to 95,650. Interestingly, this is its best ever sales performance in a single month. As per the company’s management, plant de-bottlenecking has helped in higher supplies leading to improved volumes. Also, some of the company’s newly launched models have been doing particularly well. Further, the company expects the fourth quarter of FY10 to be as good as the third quarter’s performance. It may be noted that the company’s topline grew by a strong 62% YoY during 3QFY10 on the back of a 49% growth in volumes. Maruti is currently trading lower on the bourses.
As per a leading business daily, engineering major L&T is aiming for a revenue of Rs 37 bn from its consolidated electrical systems business for FY10. This, in effect, would mean a growth of about 12% to 13% YoY for the segment. As per the company’s management, 4QFY10 promises a growth of around 12% YoY for the division as it has seen an improvement in the power and infrastructure sectors, which were affected by the slowdown a while back. It may be noted that this business segment manufactures products like switchgears, metering systems, petrol dispensing pumps and medical equipment, and contributed about 8.3% to the company’s overall topline during 9mFY10.