Indian markets were seen trading in the green on the back of buying interest in heavy weights during the previous two hours of trade. Stocks from auto and capital goods sectors are witnessing the maximum buying interest while some profit booking is observed in stocks from the IT and metals space.
BSE-Sensex is trading up by 69 points while NSE-Nifty is trading 16 points above the dotted line. BSE-Midcap index is trading flat while the BSE-Smallcap index is trading 0.3% above yesterday’s closing. The rupee is trading at 46.97 to the US dollar.
After giving a clean chit to the Nano cars which caught fire recently, Tata Motors is ready to roll out its first Nano from its Sanand plant on 2nd June 2010. The Sanand plant, constructed with an investment of Rs 20 bn currently has a capacity to manufacture 250,000 units annually. It is learnt from the company that this plant can be expanded to produce 500,000 units. While over 33,000 cars have been dispatched from the company’s Pantnagar plant, the company aims to deliver 100,000 cars between October and December this year. With the Sanand plant coming on board, we can expect the Nano to add to Tata Motors’ bottom line in FY11.
The Indian Hotels Company Limited (IHCL) announced its FY10 results yesterday. The standalone top line of the company fell by 9% YoY. This is on the back of the economic slowdown. However, the company saw improvement in 2HFY10 as occupancy and room rate increased. Standalone operating (EBITDA) profit fell by 22% YoY. This fall comes on the back of increase in all operating costs as a percentage of sales. Bottom line of the company fell by 35% YoY. This was due to lower operating income, lower other income and higher interest expense. The consolidated sales fell by 5% YoY while the company turned in a consolidated loss of Rs 1.4 bn versus profit of Rs 125 m in FY09. The loss was due to a worldwide recession. However, the bottom line was specially affected by drop in profitability of its hotels in US. With an economic recovery and higher demand for hotel rooms, we expect the company to improve its performance going forward.