Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Fall in Auto Sales, Rising Crude Oil Prices, and Top Cues in Focus Today
Thu, 11 Jul Pre-Open | Monish Vora, TM Team

India share markets witnessed selling pressure yesterday.

At the closing bell yesterday, the BSE Sensex stood lower by 173 points (down 0.5%) and the NSE Nifty closed down by 57 points (down 0.5%).

The BSE Mid Cap index ended the day down 0.7%, while the BSE Small Cap index ended the day down 0.8%.

Sectoral indices ended on a negative note with stocks in the capital goods sector and realty sector witnessing most of the selling pressure.

Top Stocks in Focus Today

From the IT sector, Tata Consultancy Services (TCS) share price will be in focus today as the company on Tuesday posted a net profit of Rs 81.3 billion, a 10.8% rise over the corresponding period of the previous financial year.

Sequentially, the rise was marginal. During the April-June period, the Mumbai-based firm reported an 11.4% rise in revenue at Rs 381.7 billion on a year-on-year (YoY) basis while it was 0.4% higher over the preceding quarter.

--- Advertisement ---
Can You Believe This? We Can't!

It's really unbelievable…

Majority of news agencies, TV channels and research firms are focusing on the point that thousands of crores of investor wealth got wiped out in the recent crash.

But hardly anyone is talking about the amazing opportunities this crash has opened up. And the bigname companies that are available for cheap only due to the recent crash.

That's where we at Equitymaster are different.

Our Co-Head of Research, Tanushree Banerjee, has identified 7 solid companies that are available cheap right now and could rise substantially in the coming years.

And you could now get Tanushree's special report with the full details virtually FREE…

Click here to find out how…
------------------------------

In dollar terms, revenue was US$5.5 billion, up 8.6% YoY, while the rise in constant currency terms was 10.6%.

From the aviation space, shares of InterGlobe Aviation (IndiGo) will be in focus today. The stock of the carrier witnessed huge selling pressure yesterday as one of the promoters Rakesh Gangwal approached markets regulator over alleged corporate governance issues at the airline.

As per an article in The Economic Times, Gangwal alleged that a shareholders' agreement gave Rahul Bhatia unusual controlling rights over the company. Gangwal held 36.7% stake in the airline as of the latest filing. Co-promoter Rahul Bhatia, on the other hand, owned 38% stake in the airline.

He suspected that the rights and a lack of diversity and paucity of independent directors may be at the root of why governance matters have taken a back seat at IndiGo.

From the banking sector, market participants will be tracking State Bank of India (SBI) share price as the state-run lender has lowered its lending rates by 5 basis points (bps) across all tenors, with effect from July 10, 2019.

Auto Sales Decline in June

Data released by the Society of Indian Automobile Manufacturers (SIAM) showed domestic passenger vehicle (PV) sales declined by 17.5% last month on a year-on-year (YoY) basis. PV sales stood at 2,25,732 units in June from 2,73,748 units in the year-ago period.

Domestic car sales were down 24.9% to 1,39,628 units as against 1,83,885 units in June 2018.

Motorcycle sales last month declined 9.5% to 10,84,598 units as against 11,99,332 units a year earlier.

Sales of commercial vehicles were down 12.2% to 70,771 units in June against 80,670 units in the same period a year ago.

Total two-wheeler sales in June declined 11.6% to 16,49,477 units compared to 18,67,884 units in the year-ago month.

Vehicle sales across categories registered a decline of 12.3% to 19,97,952 units from 22,79,186 units in June 2018.

In fact, all vehicle categories witnessed decline in sales during the month.

Note that the past months have been difficult for the auto sector owing to weak demand and liquidity issues. The sector expected some sops from the Union Budget on Friday. The Budget did address liquidity concerns in the system but failed to impress the industry with specific measures.

Auto manufacturers are now hoping for a normal monsoon and expect revival in sales as the liquidity crunch gets addressed.

Notably, the Indian auto sector is in the middle of a storm.

Multiple factors have affected the auto sector of late.

The liquidity crisis faced by NBFCs, regulatory changes leading to increased costs, new emission norms... they have all taken their toll.

Also, this sector is ripe for disruption with electric vehicles and ride sharing applications.

Maruti, India's largest car maker announced it would stop making diesel cars from April next year.

The coming one year will be a real test for India's auto companies.

It will also tell us if this slowdown is temporary or if there has been a structural change in the sector.

Only the ones adapting their business models to the rapidly changing environment will survive and thrive.

Crude Oil Continues Momentum

Oil prices witnessed buying interest yesterday after an industry group reported that US stockpiles fell for a fourth week in a row.

Gains were also seen as market participants turned their attention to the tension around Iran and OPEC's extended cuts.

The market has been concerned that Russia wouldn't fully comply with the extended cuts.

In the coming days, market participants will be tracking OPEC and the International Energy Agency's (IEA) monthly reports on the state of the oil market this week.

Also, in other news for crude oil, India's crude oil production in May year fell 7% to 2,800 thousand metric tonne (TMT) due to fall in production from fields operated by Oil and Natural Gas Corporation (ONGC), Oil India, and private operators.

The fall in domestic crude oil production pushed the country's crude oil import dependence to 85% in the month as compared to 83.8% recorded in the corresponding month a year ago.

As per the data, cumulatively, domestic crude oil production decreased 7% to 5,519 TMT during the first two months (April-May) of the current financial year (2019-2020), as compared to the corresponding period a year ago.

Note that rising crude oil prices coupled with decreasing production has a big impact on the Indian economy as it imports most of its energy needs.

Rise in crude oil increases input costs for dependent firms. It also means rising inflation. Rising inflation means rising interest rates.

It also puts pressure on the government to cut excise duty, thereby impacting its revenues. We have already seen that happening.

How this all pans out in the coming months remains to be seen.

We will keep you updated on all the developments from this space. Stay tuned.

To know more on crude oil, you can read one of Vijay Bhambwani's recent articles: Is OPEC Dying?

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Fall in Auto Sales, Rising Crude Oil Prices, and Top Cues in Focus Today". Click here!

  

Stock Market Updates

TUBE INVESTMENTS OF INDIA LTD Share Price Up by 5%; BSE CAPITAL GOODS Index Up 0.5% (Today's Market)

Aug 7, 2020 03:34 PM

TUBE INVESTMENTS OF INDIA LTD share price is trading up by 5% and its current market price is Rs 558. The BSE CAPITAL GOODS is up by 0.5%. The top gainers in the BSE CAPITAL GOODS Index are TUBE INVESTMENTS OF INDIA LTD (up 5.2%) and HONEYWELL AUTOMATION (up 14.2%). The top losers are V GUARD INDUSTRIES (down 0.2%) and SKF INDIA (down 0.3%).

BANK OF BARODA Share Price Up by 5%; BSE BANKEX Index Up 0.4% (Today's Market)

Aug 7, 2020 03:34 PM

BANK OF BARODA share price is trading up by 5% and its current market price is Rs 49. The BSE BANKEX is up by 0.4%. The top gainers in the BSE BANKEX Index are BANK OF BARODA (up 5.1%) and RBL BANK LTD (up 9.7%). The top losers are AXIS BANK and SBI (down 0.2%).

ADANI TRANSMISSION Share Price Up by 9%; BSE POWER Index Up 1.4% (Today's Market)

Aug 7, 2020 03:34 PM

ADANI TRANSMISSION share price is trading up by 9% and its current market price is Rs 254. The BSE POWER is up by 1.4%. The top gainers in the BSE POWER Index are ADANI TRANSMISSION (up 9.0%) and JSW ENERGY (up 5.3%). The top losers are NTPC (down 0.3%) and KALPATARU POWER (down 0.5%).

ESSEL PROPACK Share Price Down by 5%; BSE 500 Index Up 0.3% (Today's Market)

Aug 7, 2020 03:14 PM

ESSEL PROPACK share price is trading down by 5% and its current market price is Rs 275. The BSE 500 is up by 0.3%. The top gainers in the BSE 500 Index are HONEYWELL AUTOMATION (up 11.7%) and RBL BANK LTD (up 10.0%). The top losers are ESSEL PROPACK (down 5.0%) and LUPIN (down 6.0%).

EMAMI LTD Share Price Up by 6%; BSE FMCG Index Up 0.8% (Today's Market)

Aug 7, 2020 02:26 PM

EMAMI LTD share price is trading up by 6% and its current market price is Rs 254. The BSE FMCG is up by 0.8%. The top gainers in the BSE FMCG Index are EMAMI LTD (up 6.2%) and GSK CONSUMER (up 5.1%). The top losers [TOPLOSERS].

Sensex Trades Marginally Lower; HCL Technologies & Infosys Top Losers (Today's Market)

Aug 7, 2020 12:30 pm

The BSE Sensex is trading down by 83 points, while the NSE Nifty is trading down by 18 points.

View More Indian Share Market News

Most Popular

These 5 Smallcaps Deserve a Place in Your Coffee Can Portfolio(Profit Hunter)

Jul 28, 2020

When it comes to quality stocks, doing less is more.

Before You Buy Your First Electric Vehicle Consider Buying this Stock(Profit Hunter)

Jul 29, 2020

As competition intensifies in the electric vehicle space, only few will create huge wealth over the years.

How to Buy Gold and Silver(Fast Profits Daily)

Jul 27, 2020

In this video I'll show you how to buy bullion the right way.

Large Opportunities Are Coming Our Way

Aug 5, 2020

Kenneth Andrade tells us why stocks will bounce back strongly and what he's bullish on.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 7, 2020 (Close)

MARKET STATS