Indices in the Indian equity markets continued to slide downward during the closing stages and finally closed the day in the negative. While BSE-Sensex edged lower by around 90 points, NSE-Nifty was down to the tune of around 30 points. BSE Small Cap index however bucked the trend and closed marginally higher. BSE Mid Cap on the other hand closed nearly flat. More than two stocks declined for every one that closed in the positive on the Sensex.
Major indices across Asia closed lower today whereas Europe is also trading in the red currently. The rupee was placed at Rs 56.9 to the dollar at the time of writing.
The optimism in the first half of the session was mainly on account of expectations of some strong measures by the Government to boost the economy. Although the Government did make certain announcements, it turns out the markets did not consider them to be adequate enough. The fact that there wasn't any strength on display in Asia and Europe also did not help matters.
TVS Motors, one of India's major two wheeler manufacturers, closed marginally higher today. The reason behind the interest in the counter could be attributed to reports that the company is likely to come out with a slew of technologies which will help make its vehicles more energy and thus, cost efficient. It has a target of increasing the mileage of its current two-wheelers by at least 20%. The first set of vehicles is likely to hit the roads by end of next year. Important to add that it has included hybrid technologies that will enable a two-wheeler to switch between petrol/diesel and electric power, with the aid of intelligent controllers.
Most textile stocks also positively today, perhaps in response to the upward revision in textile export target for the current financial year. It should be noted that the Government has revised the target to US$ 40.5 bn from the current US$ 38 bn. The upward revision was done in the aftermath of some sops announced in the Foreign Trade Policy. In FY12, Indian exports touched US$ 34 bn compared to US$ 26 bn in the year before. In order to reduce their dependence on traditional markets like the US and Europe, exporters are now exploring other destinations like Latin America, Russia, Japan and Africa.