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Asian markets got off to a gloomy start as Brexit concerns continued to weigh on markets. The Nikkei 225 is up by 0.33%, while, the Hang Seng is down 0.69%. Major indices in Europe ended their session on a negative note. The US markets also ended their previous session in the red.
Meanwhile, Indian stock markets have opened the day on a positive note. The BSE-Sensex is trading higher by 61 points and the NSE-Nifty is trading higher by 21 points. Both S&P BSE Mid Cap and S&P BSE Small Cap are trading higher by 0.4% and 0.6% respectively. Barring IT sector, all the sectoral indices have opened in green with oil & gas and PSU stocks leading the gains. The rupee is trading at 67.90 against the US$.
The Share of Siemens Ltd has opened the trading day up by 1.4% after the company bagged Rs 5.7 billion order from Power Grid Corp to supply one of the world's largest Static Synchronous Compensator (STATCOM) solutions.
The order includes designing, engineering and commissioning of STATCOMs at four substation locations of Power Grid: Ranchi, Rourkela, Kishenganj and Jeypore across the states of Bihar, Jharkhand and Odisha. The STATCOM projects will be installed at 400 kV level with a dynamic swing range of 2000MVAr and 1250MVAr mechanically switched components.
Reportedly, the STATCOMs are being manufactured at the Siemens plant at Goa. Power consumers are expected to benefit in the form of constant grid voltage and frequency, leading to the availability of uninterrupted quality power.
This news comes at a time when Siemens recently signed an agreement with Spain's Gamesa to combine their wind energy businesses to create the world's biggest builder of wind farms. Siemens has struggled to turn its wind energy business profitable and its business in India, through its listed subsidiary, is an inexperienced one. Siemens will hive off its wind energy business and merge it with Gamesa. Siemens will hold 59% stake in the merged entity while Gamesa will hold the balance 41%.
The engineering industry in India has grown tremendously over the years. But that growth has been marked by extreme volatility. Over the last eight years, the sector has seen numbers ranging from an output growth of 48% YoY in one year to a contraction of 6% YoY in another. In our recent edition of The 5 Minute WrapUp Premium, we have discussed the factors one should look for when picking an engineering stock (Subscription Required).
According to an article in The Economic Times, Maruti Suzuki is ramping up production of its compact SUV Brezza. Reportedly, the company will roll out 10,000 units a month from July to cater a strong demand for the vehicle. Brezza also made it to the top 10 best-selling passenger vehicle models in May, helping the company tighten its grip in the segment.
This is the second time the company has revised sales estimates for the model launched in March. Maruti Suzuki had previously revised its production plan to 100,000 units a year from 80,000 units after the model got a favourable reception (Subscription Required) at the Auto Expo in February. Maruti sold 20,588 units of the Brezza between April and May and has 52,000 pending orders for the vehicle.
Data shows that sales volumes of Maruti's Alto, Swift and Dzire models have reduced somewhat in the three months to May.
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