The Sensex today is down by around 65 points (0.3%), while the NSE-Nifty is down by about 25 points (0.4%). However, the mid and small cap stocks have opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% and 0.3% respectively. The rupee is currently trading at Rs 61.24 to the US dollar.
Auto stocks have opened the day mainly in the red with Force Motors Ltd and TVS Motors Ltd leading the pack of losers. As per a leading financial daily, Tata Motors has earmarked Rs 15 bn in FY13- 14 for the development and launch of new products in the commercial vehicles segment amid challenging environment and growing competition in this space. As per the management, the company will continue to invest around Rs 15 bn per annum, every year towards new products, technology, improvements and innovations in the segment. It is to be noted that the segment is witnessing the worst slowdown in more than a decade. This is mainly because of the slowdown in the overall economy impacting the mining, infrastructure and construction activities. Currently, the capacity utilization of Tata Motor stands at around 60%-65%.
Mining have opened the day on a mixed note with Coal India Ltd and Gujarat NRE Coke Ltd leading the losses. However, NMDC Ltd and Ashapura Minechem Ltd were leading the gains. As per a leading financial daily, Coal India Ltd has been forced to stop mining at various blocks including six big mines. While millions of tonnes of coal can be quickly excavated from these mines, as per the environment ministry, the output has already reached the allowed limits and hence Coal India has been restricted from further mining. The mining ban does not even allow the excavation of coal that got exposed during removal of surface soil. The lack of environment clearances is causing significant revenue loss to the company.