The Indian markets continued to move downwards on account of sustained selling activity witnessed during the previous two hours of trade. Stocks from the realty, IT, telecom, capital goods and power sectors are the ones that are worst hit by the extensive selling. Nevertheless, stocks from FMCG and consumer durables sectors are managing to hold-on to the gains.
The BSE-Sensex and the NSE-Nifty are trading lower, down by around 93 points and 26 points respectively. The BSE-Midcap and BSE-Smallcap are also trading lower, down by around 0.42% and 0.12% respectively. The rupee is trading at 44.45 to the dollar.
According to a leading business daily, India's largest private sector company Reliance Industries (RIL) is expected to buy a significant stake in Deccan 360, a freight services firm. This firm is an express transportation and logistics company which caters to a plethora of industries like retail, textile, banking and pharmaceuticals. It provides air cargo as well as road service operations in 24 locations across India. It may be noted that Deccan 360 which was evaluating a stake sale option, had RIL, Bharti, and FedEx vying to acquire stake in the company.
Through this collaboration RIL aims to tap into the growing logistics industry in India which is at an inflection point. While such investments do serve as a good diversification option, we believe that RIL's investments in exploration and production (E&P), organised retail and logistics could be the cornerstones of its future growth.
As per a leading daily, Tata Motors' global vehicle sales for March 2010 clocked 101,712 vehicles, an increase of 39% YoY. Sales were aided by robust growth in commercial vehicles as well as in premium brands - Land Rover and Jaguar. Sales of Land Rover and Jaguar surged by 43% YoY with Land Rover leading the sales growth. Land Rover sales grew by 43% YoY to 23,538 vehicles while sales of Jaguar grew by 8% to 4,642 vehicles.
For the fiscal year 2010, Tata Motors sold 872,951 vehicles globally. This is an increase of 19% YoY aided by sales of commercial vehicles which grew by 37% to 413,057 units. Sales of Land Rover and Jaguar, however, fell during this period by 11% YoY due to lower demand as a result of the economic down turn. However, the latest figures indicate that Tata Motors is making a recovery with gains by Jaguar and Land Rover supported by strong sales in the commercial vehicles market. The stock of Tata Motors is finding favour on BSE currently.