Backed by strong buying in index heavy-weights, Indian share markets continued to rally in the post-noon trading session. Barring pharma, all the sectoral indices are trading in the green with banking, oil and gas and realty stocks being the biggest gainers.
All the automobile stocks are trading in the green led by Force Motors and Maruti Suzuki. Passenger cars and commercial vehicles are seeing no respite from poor demand as per data released by Society of Indian Automobile Manufacturers for the month of April. For the first month of FY14, sales of domestic passenger cars fell by 10.2% to 1.35 lakh units. Sales of commercial vehicles declined by 24% to 43,080 units for the month. However motorcycles continued to grow, registering a growth of 8% to 9.11 lakh units in April. Total two wheeler sales were up by 11.7% to 13 lakh units. The vehicle sales across categories were higher by 6.9% to 15.69 lakh units during the month.
Almost all PSU banking stocks are trading firm today with gainers led by UCO Bank and Union Bank of India. As per a leading business daily, in a bid to reduce its non-performing assets PSU major SBI has asked the promoters of debt laden companies to sell their non-core assets and bring in equity. This comes as part of the bank's initiatives to recover its bad loans. Few companies that have sold off their assets recently include the Future Group, Videocon Industries, GMR and Fortis Healthcare. As of December 2013, the bank's net NPAs were 3.2% exerting pressure on its assets quality. SBI is trading higher by 2%.