Auto stocks are trading strong led by Eicher Motors and Hero Honda. As per a leading financial daily, Tata Motors is looking at raising the production from its Pantnagar plant. The auto company aims to increase the production capacity at this plant from 0.1 m units to 0.35 m units. It recently launched two new small commercial vehicles (CVs) "Magic Iris" and "Ace Zip". These four-wheeler vehicles would be targeting the three-wheeler commercial vehicles in this segment including auto rickshaws and cargo vehicles. Tata Motors will also launch a new range of light commercial vehicles (LCVs) i.e. trucks and buses in July. The new LCV will be in the 7-12 tonne category and will roll out of the Pune plant. There are plans to launch a new intercity luxury bus to take on Volvo and Mercedes in the next 2-3 months. The final product is in the testing phase. It may be noted that the currently, luxury bus market in India is around 500 units a year and is dominated by Volvo and Mercedes.
Finance stocks are trading firm led by JN Financial and Power Finance Corporation. HDFC Ltd. released its FY11 (financial year 2010-2011) results yesterday. The company's interest income grew by 12% YoY on the back of 20% YoY growth in advances. Net interest margins for the year were marginally higher at 4.4%. Owing to the gains from sale of investment, other income grew by a sharp 66% YoY. For the year, net profit increased by 25% YoY. This was on the back of increase in other income. For the fourth quarter, net profit was higher by 23.3% YoY. This was aided by an increase of 175% YoY in other income. Capital adequacy ratio stood at 14% while gross NPAs stood at 0.8% for the year.