Indian stock markets remain lackluster

Wed, 9 Jul 01:30 pm

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Indian stock markets continued to hover around the dotted region during the post noon trading session. The economic survey released data for the year 2013-14. As per this survey, the GDP growth for the current fiscal is projected at 5.4%-5.9%. Amongst the sectors, automobile and IT stocks are witnessing maximum selling pressures while stocks from FMCG and Oil and gas sectors are leading among the pack of gainers.

BSE-Sensex is down by 23 points and NSE-Nifty is down by 5 points. Small and mid cap indices too witnessed selling pressures . BSE Mid Cap and BSE Small Cap are down by 0.55% and 1.11% respectively. The rupee is trading at 59.71 to the US dollar.

Majority of the stocks from Automobile sector are trading in red with Ashok Leyland and Mahindra and Mahindra (M&M) being among the leading losers. As per the financial daily, Society of Indian automobile manufacturing (SIAM) has released data on the domestic automobile sales. Reportedly, the domestic passenger car sales have increased by 14.7% YoY for the month of June. Motorcycle sales were also up by 9.6% YoY and the two wheeler sales rose by 13% YoY during June month. However sales of the commercial vehicles were down by 9.03% YoY during the month. Financial year 2014 had been an extremely difficult one for the Indian auto industry. The last two months have witnessed better volume uptake. However, we will wait and see how the sales picks up for the upcoming period. There are hopes that demand would pick up as the new government introduces reforms that will bolster economic activity and development.

Most of the stocks from Power sector and Engineering sector are trading in red. GVK power and Indiabulls power in the power sector and BEML and Bharat Electronics in the engineering sector are witnessing maximum selling pressures. As per the financial daily, engineering and electronics conglomerate Siemens has bagged an order worth Rs 520 m from NTPC Ltd. NTPC has given the contract of distributed control system (DCS) to their power plant in Bihar. Reportedly, the project includes the supply, erection and commissioning of control and instrumentation for the complete power plant. Siemens is already supplying equipments to three of NTPC's super thermal power projects. NTPC is one of the long term customer of Siemens. Over and above, the Siemens management is also hopeful of receiving more contracts from NTPC.