Indian share markets remained buoyant with indices hovering over the dotted line in the post-noon trading session. Sectoral indices are trading mixed with metal, oil & gas and consumer durable stocks being the biggest losers whereas power, banking and pharma stocks are trading in the green.
As per a leading financial daily, inflation based on Wholesale Price Index (WPI) slowed down to an eight-month low of 5.05% in January as compared to 6.16% in December. The drop in inflation has been on account of sharp decline in vegetable rates. Retail inflation, that forms the basis RBI's monetary policy, fell to 8.79% in January from 9.87% in December. A committee set up by RBI has suggested that the consumer price index (CPI) inflation should be brought down to 8% by January 2015 and to 6% by January 2016. Therefore in view of the high CPI inflation, the RBI is not likely to loosen its monetary policy in the immediate future despite economic slowdown. The next review of the monetary policy is due on 1st April 2014.
Majority of the auto stocks are trading in the green with Force Motors and Escorts being among major gainers whereas Ashok Leyland and Tata Motors being among major losers. As per a leading financial daily the joint venture between Eicher Motors and Sweden's Volvo Group, VE Commercial Vehicles (VECV) wants to increase the share of exports in overall revenues. Leveraging on Volvo's distribution network, the joint-venture wants to expand the export base of Eicher brand to South East Asia, Middle east and Africa. The joint venture has targeted to reach 15% of total sales from exports in 3-5 years. VECV exported 3,300 trucks and buses in 2013 that accounted for 8.1% of its overall sale volumes. Eicher Motors stock is currently trading up 1%.