Indian stock market lost further ground due to selling pressure in heavy-weights over the last two hours of trade. All sectoral indices are trading in the red. Stocks from the realty, metal, banking and FMCG space are losing the most.
The BSE-Sensex is trading down by 264 points while NSE-Nifty is trading 81 points below yesterday's closing. BSE Midcap and BSE Small cap indices are down by 1.8% and 1.6% respectively. The rupee is trading at 44.27 to the US dollar.
Aluminum stocks have been trading weak with Hindalco and Nalco leading the pack of losers. As per a leading financial daily, National Aluminium Co Ltd (NALCO) has raised aluminium prices by 5,000 rupees (US$113) per tonne across all products, after slashing prices by a net 8,000 rupees in two moves in as many months. As per the company's commercial director, the prices have been revised to be kept at par with London Metal Exchange (LME). It is important to note that LME aluminium has gained about 3% since July 14. The basic price (ex-works) of standard aluminium ingots after the latest revision has been increased to 1,44,200 rupees per tonne. The company had cut aluminium prices by 3,000 rupees a tonne on July 15 following a drop in LME rates, barely a month after it shaved 5,000 rupees off the price.
Most of the auto stocks have been trading in the red with TVS Motors, Escorts and Eicher Motors leading the pack of losers. However, Ashok Leyland is trading firm. Car sales growth in the domestic market continued to slow down, with the top three companies - Maruti Suzuki, Hyundai and Tata Motors - reporting declining numbers in July compared to the same month last year. As per a leading financial daily, Tata Motors, which is also India's largest truck maker by sales, reported a 6% year on year decline in sales volume to 63,761 units. The domestic sales of Tata commercial and passenger vehicles fell 9% YoY to 57,990 units. The company's commercial vehicle sales increased 14% to 40,798 units. LCV (Light commercial vehicles) sales were 24,962 units, a growth of 22% over July last year. M&HCV (Medium and Heavy Commercial vehicles) sales stood at 15,836 units, a growth of 4% over July last year.