Automobile sector shares are trading on a mixed note with Mahindra & Mahindra Ltd. (M&M) and Hero Motocorp leading the gains while Tata Motors and Tube Investments are facing the maximum selling pressures. According to a leading financial news medium, Tata Motors reported disappointing global sales for the month of May. The global vehicle sales declined by 15% YoY to 81,783 units. The fall came on the back of weak domestic performance in the passenger vehicle and medium and heavy commercial vehicles segment. Total passenger vehicle sales stood at 43,142 units, while commercial vehicle sales were recorded at 38,461 units during the same month. That said, Jaguar and Land Rover (JLR) succeeded in recording better-than-expected YoY growth of 3.7% driven by healthy momentum in the recently launched models. In its statement, the company stated that while sales of luxury sedans of Jaguar brand stood at 7,061 units, Land Rover sales stood higher at 24,149 units during the month.
All of the PSU banks shares have slipped in red with United Bank of India and UCO Bank leading the losses. According to a leading financial news daily, State Bank of India (SBI), the country's largest lender, is expected to post substantial gains from treasury operations during the first quarter of the current financial year. The bank intends to double the profit from treasury operations that stood at Rs 8.1 bn last fiscal and aim to increase the profits from equities and mutual fund segments from Rs 5.97 bn last fiscal to Rs 7 bn this fiscal. The bank is of the opinion that FY12 was reportedly a bad year and the year of consolidation. During FY13, the bank expects to double the profits on sale of investments at the least. The bank also took the advantage of the lower interest rates on Government securities (G-sec) in the first two months of this fiscal which will have positive impact on the balance sheet. Therefore, 1QFY14 is expected to prove a good quarter for SBI pertaining to treasury gains and which in turn will boost their profitability. SBI's share is down by 1.6%.