With persistent selling in index heavy-weights, Indian share markets continued to trade below the dotted line in the post-noon trading session. However barring capital goods, FMCG and auto, all the sectoral indices are trading in the green. Pharma stocks are the biggest gainers today.
Majority of the auto stocks are trading in the red with Tube Investments and Hero MotoCorp being the major losers whereas Escorts and Eicher Motors are among the few stocks trading in the red. As per a leading financial daily, Maruti Suzuki has said that it will continue to extend discounts to boost sales. The company offered average discount to the tune of Rs 17,500 across models in March 2014 quarter. Slowdown in passenger car sales has continued despite the government slashing the excise duty in February. On small cars, the excise duty was cut from 12% to 8%. For mid-sized cars, the levy was reduced from 24% to 20% whereas large cars saw duty fall from 27% to 24%. Additionally, Maruti had to bear an additional outgo of Rs 1.4 bn to compensate dealers for vehicle stock already sold after price cuts announced by it. Reportedly, Maruti cut vehicle prices between Rs 8,502 and Rs 30,984 across models in February after excise duty was reduced by the government. Maruti's stock is trading down marginally.
Most of the large IT stocks are trading in the red with HCL Infosys and NIIT being among major losers. Mphasis and Wipro are among a few stocks trading in the green. As per a leading financial daily, Tata Consultancy Services (TCS) has said that it expects its loss-making Brazilian unit to turn in the black by the end of FY14.The Brazil unit has been making losses for at least the last five years and registered a net loss of Rs 433 m in FY13. TCS had started operations in Brazil in 2002 and currently employs 1,300 staffers and operates two development centres. However contribution of sales from the region is less than 1% of consolidated sales. Indian IT companies have increased investments in Brazil to serve local customers and utilize the country's prowess as near shore delivery location. The IT market in Brazil is estimated to be worth $25 bn.