Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Sensex Continues Momentum; Auto Stocks Lead Gains
Thu, 11 May 01:30 pm

After opening the day on a positive note, share markets in India have continued the momentum and have continued to trade near record high levels, comfortably above the 30,000 level. Sectoral indices are trading on a mixed note with stocks the metals sector and stocks in the auto sector trading in green, while stocks in the power sector are leading the losses.

The BSE Sensex is trading up by 90 points (up 0.3%), and the NSE Nifty is trading up by 40 points (up 0.4%). Meanwhile, the BSE Mid Cap index is trading up by 0.4%, while the BSE Small Cap index is trading up by 0.5% The rupee is trading at 64.42 to the US$.

In news from stocks in the banking sector. Kotak Mahindra Bank share price is trading on a positive note today, after the bank received shareholder approval to issue up to 62 million shares, worth about Rs 56 billion.

According to an article in Livemint the bank plans to launch a qualified institutional placement (QIP) of shares to raise about Rs 56 billion as early as this week.

A huge fundraising plan was already approved by the board as well as shareholders of the bank.

Just Released: Multibagger Stocks Guide
(2017 Edition)

In this report, we reveal four proven strategies to picking multibagger stocks.

Well over a million copies of this report have already been claimed over the years.

Go ahead, grab your copy today. It's Free.

NO-SPAM PLEDGE - We will NEVER rent, sell, or give away your e-mail address to anyone for any reason. You can unsubscribe from The 5 Minute WrapUp with a few clicks. Please read our Privacy Policy & Terms Of Use.

In the resolution that was cleared by the board and subsequently approved by shareholders, the bank stated that over 62 million shares can be issued for the capital fund raising. The money would be used for two purposes - first to look out of consolidation opportunities in the banking sector and second, to look at opportunities in terms of stressed assets in the banking system.

Another purpose would be to reduce the promoter's stake in the bank to 30% as per RBI guidelines.

Kotak Mahindra's investment banking arm, Bank of America Merrill Lynch and Morgan Stanley have been appointed to lead the transaction.

At the time of writing, Kotak Mahindra Bank share price was trading up by 1.1%.

The stock has rallied over 35% since the beginning of the calendar year and is currently trading near its all-time high.

With stocks hitting their record highs, how can one expect to make money in rising markets?

We believe a few super investors could provide the clue. These are the guys who've beaten the markets black and blue and have an eye for multi bagger stocks irrespective of the macro environment.

With respect to which super investors to follow, our Research analysts Kunal and Rohan have could be of great help courtesy their project, The Superinvestors of India.

To know more about these superinvestors and their stock picking approach, download a free copy of - The Super Investors Of India.

Moving on to news from stocks in the auto sector. Hero Motocorp share price is among the leaders on the bourses today after the company declared its March 2017 quarter results.

Hero MotoCorp fiscal-fourth quarter profit fell 14% as India's largest motorcycle maker sold Bharat Stage III (BS III) compliant two-wheelers at a discount to clear inventory, following a court order.

After notebandi in the third quarter, the company suffered another major blow in the March quarter from the BS III ban which brought its net profit down to Rs 7.2 billion from Rs 8.3 billion in the same period a year ago.

Inventory Pile of Unsold BS III Vehicles

One must note that Hero MotoCorp had among the highest levels of unsold BS III vehicle inventories as on 20 March 2017, which it had to liquidate before 1 April 2017 following the Supreme Court directive on 28 March 2017.

According to the company, the cost of liquidation of BS III inventory at a discount was Rs 1.9 billion.

Going forward the company plans to focus on recapturing market share lost to rivals by introducing at least six new models in 2017-18 and a plan for a capital expenditure of over Rs 25 billion till the next fiscal.

It remains to be seen whether the company recovers from the setback and regains market share.

At the time of writing, Hero MotoCorp share price was trading up by 3.1%.

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

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Sensex Continues Momentum; Auto Stocks Lead Gains". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Mar 16, 2018 (Close)