Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Autos weigh on stock markets
Mon, 9 May 11:30 am

Indian stock market indices have been trading in the red over the last two hours of trade after opening flat. All the sectoral indices are in the red except FMCG.

The BSE-Sensex is down by 117 points while NSE-Nifty is trading 35 points below the dotted line. However, BSE Midcap and BSE Small cap indices are trading flat. The rupee is trading at 44.68 to the US dollar.

Auto stocks are trading weak led by Tata Motors and Hero Honda. As per a leading financial daily, Mahindra & Mahindra is aiming at becoming a global SUV (sport utility vehicle) major. In the passenger car segment, the auto company intends to have just one brand "Verito" which is the re-launched version of Logan. Plans are also on for introducing a small car under "Verito" brand. As per the management, it is appropriate to have a single car in a portfolio of SUVs. It may be recollected that Mahindra had bought over South Korean firm Ssangyong last year. M&M plans to bring in Ssangyong's "Rexton" and "Korando-C" into the Indian markets. But, the hi-end sedan "Chairman" will be left out of this list of new launches. M&M's falling interest in passenger cars has been evident and the company recently avoided including a new car from Renault's portfolio.

Energy stocks are trading mixed with MRPL and Gujarat State Petronet trading firm while ONGC and IOC are trading weak. As per a leading financial daily, BG India, Reliance Industries Limited (RIL) and ONGC plan to invest a minimum of US$ 1 bn in the oil and gas fields Panna-Mukta and Tapti (PMT) which are situated off India's west coast. The consortium plans to invest in the fields to arrest the fall in production. The production from the PMT fields has been falling by 18% a year. The strategy is to inject water into the wells to improve production. If successful, the production could improve by 7%. However, the consortium is seeking an extension of the production sharing contract (PSC) by at least 5 years. The PSC is expected to expire in 2019. An extension till 2024 will enable the 3 partners to recover their costs of this investment. At present, the output from the PMT fields is 32,000 barrels oil per day and 11.5 m standard cu m gas per day. It may be noted that ONGC hold 40% stake in the field while BG and RIL hold 30% each.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Autos weigh on stock markets". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.