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Indian share markets plunge
Mon, 19 Aug 01:30 pm

Indian share markets saw no respite and continued to fall sharply in the post-noon trading session. Barring metal and IT, all sectoral indices are trading in the red with auto, banking and pharma being the biggest losers.

BSE-Sensex is down 411 points and NSE-Nifty is trading down 121 points. BSE Mid Cap is trading down 1.9% and BSE Small Cap index is trading down 1.4%. The rupee is trading at 62.6 to the US dollar.

Majority of the automobile stocks are trading in the red, with Mahindra & Mahindra and Escorts being the biggest losers. As per a leading financial daily, overall slowdown in vehicle sales is forcing automobile manufacturers to tap the North Eastern markets that still present robust potential for growth. This opinion has been seconded by Society of Indian Automobile Manufacturers (SIAM), according to which the rate of car ownership in the North East is less than the country's average of 18 units per 1,000 people. Largest car manufacturer Maruti Suzuki is expanding its presence in the rural and remote parts of North East as it expects rapid growth in the region over the next 3-4 years. Currently sales from this region constitute 4% of the company's total domestic sales. Even Honda Cars India sees a lot of potential for hatchbacks and compact sedans from the North eastern region. The company expects a 50% jump in sales from the region. Also companies such as General Motors and Toyota Kirloskar Motor are planning to expand their presence in the region. Maruti Suzuki stock is currently trading down by 1.5%.

Most of the steel stocks are trading in the red with Gujarat Mineral Development Corporation (GMDC) and Jindal Saw among major losers. As per a leading financial daily in the wake of sluggish demand in the domestic markets, steel companies are focusing on exports. Steel exports have benefitted from the steep rupee depreciation. Reportedly companies are eyeing markets in Middle East, North Africa, South Asia and Europe. Steel Authority of India Ltd (SAIL) plans to double exports to 7 lakh tonnes from 3.7 lakh tonnes in FY13. Essar Steel wants to raise exports by over 25% to 1.4 m tonnes. Jindal Steel & Power Ltd (JSPL) wants to increase exports to 15% of the increased production base in FY14 and sees huge opportunities for exports particularly in Middle East and North Africa.

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Feb 20, 2018 03:35 PM