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?  

Indian Indices Open Flat
Thu, 2 Jun 09:30 am

Major Asian stock markets have opened the day on a mixed note with stock markets in Japan and China are trading lower by 2.2% and 0.2% respectively. Benchmark indices in Europe ended their previous session on a disappointing note. The rupee is trading at 67.35 per US$.

Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading lower by 10 points (down 0.04%) and NSE Nifty is trading lower by 5 points (down 0.05%). BSE Mid Cap is trading lower by 0.05%. While, BSE Small Cap is trading marginally higher by 0.1%.

Major sectoral indices have opened the day on a mixed note with stocks from banking sectors witnessing selling pressure. Whereas, stocks from information technology and metal sector is witnessing buying interest.

As per an article in Mint, auto sales rose at a brisk pace in the month of May. Sales at India's top three passenger vehicles makers namely Maruti Suzuki, Hyundai Motor and Mahindra and Mahindra grew by 10% YoY in the month of May. The passenger vehicles posted a healthy growth despite the ban on sale of diesel vehicles above 2000cc in Delhi.

Further, sales at Maruti Suzuki grew by 10.6% in the month. The growth was led by sales of compact car models such as Swift, Celerio, Baleno and Dzire and Vitara Breeza. However, the demand for entry level vehicles has slipped. Reportedly, sales of cars such as WagonR and Alto declined by 5.6% YoY during the month. This trend reflects the change in preferences towards costlier and feature rich models.

Moreover, sales at utility vehicle manufacturer Mahindra and Mahindra grew by 10% during the month. The healthy growth was on the back of the demand for its new KUV100 among other models.

However, sales at Tata Motors declined by 22% YoY during the month. Reportedly, volumes dropped despite a good response for its Tiago hatchback car.

Low interest rates and a pick-up in the economy will be key factors to drive the car sales going forward. Further, the implementation of the Seventh Pay Commission too will have a positive effect on the car sales.

Speaking about cars, Vivek Kaul has written an interesting article correlating car sales to black money. Click here to read on to his views.

In another news update, Nikkei Purchasing Managers Index (PMI) for the month of May indicated subdued growth in the manufacturing activities. PMI is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.Reportedly, the PMI for manufacturing rose marginally to 50.7 points, from 50.5 in the month of April. A reading above 50 represents expansion, while one below this level means contraction. Despite, robust gross domestic product (GDP) numbers for the March quarter, the manufacturing activities continues to remain subdued.

The government's 'Make in India' drive is a big long term positive, but there are still near term challenges. Approvals have more or less have come through, the sector is groaning under a huge pile of debt. However, as long as the government sticks to its reform agenda, the future is bright for the manufacturing sector.

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 "Indian Indices Open Flat". 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


Jan 24, 2018 01:33 PM