Indian indices continued their northward climb on the back of buying interest in heavyweights. All the sector indices are trading in green. The BSE Auto Index has risen by over 5% on account of investor interest in automobile stocks.
The BSE-Sensex is up by 500 points while NSE-Nifty is trading 150 points above the dotted line. BSE Midcap index is up by 2.4% while BSE Small cap index is trading 1.6% over yesterday closing. The rupee is trading at 45.13 to the US dollar.
Auto stocks are buzzing with Ashok Leyland, M&M, Maruti leading the pack of gainers. Maruti Suzuki, the leading passenger car maker, has reported strong growth in vehicle sales in the domestic market for the month of Feb 2011. The company has sold 111,645 vehicles in February 2011, up around 16% YoY. Sales in the domestic market stood strong at 101,543 units, up around 20% YoY. The domestic market accounted for over 90% of the total sales during the month. Sales for the A2 segment comprising of cars such as Alto, Wagon-R, Zen, Swift, Ritz, A-Star grew by over 19%. The A3 segment comprising of SX4 and Dzire models saw a 27% growth in sales. In Feb 2011, the company also launched the luxury sporty Kizashi sedan and the deliveries for the sedan are expected to begin this month. On a cumulative basis for the first 11 months of FY11, the company sold a total of 1,149,053 vehciles registering a 25% YoY growth in vehicles sold.
Engineering stocks are trading firm with Havells and Suzlon leading the gains. BHEL has won a major order for supply and installation of the main plant package for a thermal power project in West Bengal, involving two units of 550 MW each. The project won under international competitive bidding is valued at Rs 32 bn. BHEL’s scope of work in this project includes design, engineering, manufacturing and commissioning of steam turbines and generators for the main plant package. It may be noted that BHEL has developed state-of-art technology to manufacture thermal sets up to 1,000 MW and is also equipped to produce thermal sets with super-critical parameters. Separately, the company has also disclosed its intentions to commence production of renewable generating equipments soon. For the same, it plans to enter into a JV with BEL for the production of photo voltaic cells. The proposed plan may require an investment to the tune of Rs 30 to 40 bn.