Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Engg, auto stocks amongst favourites
Mon, 14 Feb 01:30 pm

Persistent buying activity led the Indian markets to rise steadily during the previous two hours of trade. Currently, buying activity is being witnessed in stocks across the board led by those from the capital goods, auto, FMCG and metal sectors. Stocks from the oil & gas and IT spaces are amongst the top underperformers at the moment.

The BSE-Sensex is currently trading higher by about 390 points (up 2.2%), while the NSE-Nifty is trading higher by about 120 points (up 2.3%). Stocks from the mid and smallcap spaces are also trading firm with the BSE Midcap and BSE Small cap indices trading higher by 2.9% and 3.5% respectively. The rupee is trading at 45.45 to the US dollar.

According to the latest available data, headline inflation eased slightly with the wholesale price index (WPI), rising 8.2% in January from a year earlier. The Index rose 8.4% earlier in December, compared to the prior period. India is still suffering from the highest inflation levels from among major Asian economies, and this is despite RBIs hawkish stance. Food prices in the WPI index jumped 15.7% in January compared with 13.6% rise in December. The central bank is however, likely to continue its stance, as price levels are still above the comfort zone. It has revised its projections for inflation at the end of March 2011 to 7% from 5.5% earlier. But, with 2 months to go, the RBI is still way off its target.

Auto stocks are currently trading firm led by TVS Motor, Tata Motors, Escorts and Ashok Leyland. Over the weekend, Bajaj Auto's Chairman Rahul Bajaj had stated that the company may consider reentering the scooter segment which it had exited completely last year. This is on the back of the market seeming to have revived over the past few years led by gearless scooters. In the year till date i.e. during the period between April 2010 and January 2011, the Indian scooter market has witnessed a growth of about 47% per cent to volumes of about 1.7 m units. The rationale for Mr. Rahul Bajaj's statement is that the scooter segment reviving and Bajaj Auto would be able to get a reasonable market share and also would help the company keep the profitability level quite firm. However, the company's current Managing Director, Mr. Rajiv Bajaj has stated that at present the company's focus area remains motorcycles.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Engg, auto stocks amongst favourites". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.