Indian stock markets continued to flounder in the red on the back of profit booking in heavy weights over the last two hours of trade. Stocks from the FMCG and capital goods space are the biggest losers while stocks from the realty and IT space have lost the least.
The BSE-Sensex is down by 212 points while NSE-Nifty is trading 66 points below the dotted line. BSE Midcap index is trading down by 0.4% while BSE Small cap index is trading 0.5% below yesterday's closing. The rupee is trading at 44.58 to the US dollar.
Auto stocks are trading in the red with M&M and Maruti Suzuki leading the losses. As per a leading financial daily, Mahindra & Mahindra is planning to set up production facilities in Africa. The company wants to establish plants in Tunisia, Morocco, South Africa, Kenya, Ethiopia and Zambia. It may be noted that Mahindra already has plants in Gambia, Tchad, Mali, Ghana and Nigeria. In fact, the tractor company is present in 24 out of the 53 countries of the continent. It gets 15% of its exports from Africa and aims to double it in a year's time.
The company management stated that the company is following a bottom of the pyramid strategy in the opportunistic market of Africa. The demand they feel will arise out of the growing disposable incomes of the people residing there. The company will be focusing on three-wheelers, light commercial vehicles and utility vehicle Bolero for this market. It is also in the process of appointing a country manager along with a team of 7-8 people to handle this expansion plan.