Indian share markets continued to hover near the dotted line in the post-noon trading session. Majority of the sectoral indices are trading in the green led by IT, realty and capital goods. Metal, auto and oil & gas are among the few stocks trading in the red today.
Majority of the auto stocks are trading in the green with TVS Motors and Hero MotoCorp being the biggest gainers. As per a leading financial daily Tata Motors has issued a profit warning stating that the company will either have no profit or insufficient profit for FY14. The company has blamed the dismal financial performance to the prolonged slowdown and weak consumer sentiments. The company will announce its Q4 and FY14 earnings result on 29th May 2014. In FY14, Tata Motor's domestic passenger vehicle volumes declined by 37% to 1.98 lakh units due to increased competition from new product launches. In the passenger vehicle segment, the company did not have major product launches only upgrades and variants in FY13 and FY14. The company will be launching two new products Bolt and Zest in the hatchback and the entry level sedan in future. Tata Motors' sales of domestic commercial vehicles fell by 28.5% to 3.2 lakh units in FY14. Tata Motors stock is currently trading down by 2.5%.
Majority of the engineering stocks are trading in the green led by Praj Industries and Kalpataru Power. As per a leading financial daily, Larsen & Toubro's (L&T's) subsidiary L & T Special Steels and Heavy Forgings has entered into technology transfer agreement with Japan Steel Works which is a world leader in heavy steel forging. The five-year agreement encompasses the critical technology for steel melting and heavy forgings made from ingots weighing upto 200 tonnes and for hydrocarbon and thermal power sectors. L&T Special Steels supplies heavy steel and alloy steel forgings for high pressure reactors and heat exchangers as well as rotors, shafts, forged slabs and special steels. L&T stock is presently trading up by 0.8%.