Indian Indices Open Flat

Thu, 7 Jul 09:30 am

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Major Asian stock markets have opened the day on a mixed note with stock markets in Japan and China trading lower by 0.4% and 0.5% respectively. While, stock market in HongKong is trading higher by 0.8%.

Benchmark indices in Europe ended their previous session on a disappointing note with stock markets in the UK ending the day lower by 1.3%. The rupee is trading at 67.40 per US$.

Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading marginally higher by 10 points (up 0.04%) and the NSE Nifty is trading lower by 7 points (down 0.08%). While, BSE Mid Cap and BSE Small Cap is trading higher by 0.1% and 0.4% respectively.

Barring stocks from information technology (IT) sector, major sectoral indices have opened the day in the green. While, stocks from <>metal sector are witnessing buying interest.

As per an article in Livemint, Mahindra & Mahindra (M&M) has decided to sell luxury cars under the Pininfarina brand. Pininfarina is an Italian design and engineering company that the Mahindra Group had acquired in December 2015. Mahindra Group had acquired the company at a valuation of US$ 185 million.

Pininfarina is primarily involved in providing designing and engineering services. Historically, the company is well-know for the designs it made for Ferrari, Fiat and Alfa Romeo in the 1950s and 1960s, as well as contemporary ones for Bentley, BMW and Maserati.

Now, leveraging its goodwill for designing brands to manufacture a luxury car beneath its brand name is a completely different ball game. It will be interesting to see how Mahindra could possibly leverage the Pininfarina brand to enter the luxury car space.

To add to this, the company is also eyeing an opportunity for an acquisition in the luxury car space. The stock is trading down marginally by 0.06%.

In another news update, there are positive developments on the monsoon front. According to the latest data as provided by Indian Meteorological Department (IMD), the monsoon deficit has dropped from 9% to 1% of the long period average.

Further, 90% of the country has received normal to excess monsoon rainfall since the season started in the month of June.

To add to this, above-normal rainfall activity is likely to happen over Central and Western India during the second week of July.

A normal monsoon will lead to higher disposable income in the hands of farmers, which in-turn will boost the rural consumption. To add to this, a normal monsoon will also help to keep the inflation at low levels. The possibility of a good monsoon would also increase the chances of the country's central bank retaining its easy money policy.