Indian stock market indices continue to trade weak over the last two hours of trade on back of heavy selling activity witnessed across industry heavyweights. IT and Capital Goods stocks witnessed maximum selling pressure, while FMCG and Realty stocks witnessed maximum buying interest.
Automobiles stocks are trading in the red led by Eicher Motors and Tata Motors. According to a leading financial daily, Ashok Leyland is planning to invest USD $17 m in its foreign subsidiaries Avia, Optare and AL Bonair. Out of the USD $17 m, the company will invest USD $10 m in its Czech Republic subsidiary Avia, which has joined hands with entrepreneurs to launch its models in the UK market and is planning to set up an assembling facility. It was in 2006 that Ashok Leyland had announced the acquisition of the truck business unit of Prague-based Avia. During the acquisition, Ashok Leyland said Avia was part of its inorganic growth plan and would enable it to enter the European Union and the Eastern European markets.
Shipping stocks are trading in the green led by Dredging Corporation and Mercator Limited. GE Shipping announced its March quarter results last week. The company has reported 38.5% YoY growth in standalone topline while the bottomline has turned positive as against a loss last year. The growth was driven mostly by freight and charter hire division as the company earned very little from sale of ships. As per the company, freight rates, especially for crude tankers remained firm throughout the quarter. But a steady growth in fleet capped any significant spurt in freight rates. Operating margins contract by 14.7% on the back of higher outgo towards hiring of chartered ships and rigs. Full year profits fell 46% YoY on the back of 24% growth in topline. Consolidated profits fell 35% YoY despite a 21% growth in topline.