Persistent selling activity led the Indian equity markets to fall into the negative territory during the post noon trading session. Barring stocks from the consumer durables and power sectors, other sectoral indices are witnessing pressure with oil & gas, realty and metal sectors leading the pack of underperformers.
The Sensex today is trading lower by about 65 points (down 0.4%), while the NSE-Nifty is down by about 10 points (0.1%). Midcap and smallcap stocks are also trading weak with the BSE Mid Cap and BSE Small Cap indices trading marginally lower. The rupee is trading at 55.47 to the US dollar.
As reported by the Hindu Business Line, India's manufacturing sector saw its weakest growth rate in about nine months during the month of August 2012. The key reasons for the same were lower exports and power failures, leading to disruption to manufacturing activity. The index used to measure production - HSBC India Manufacturing Purchasing Managers' Index (PMI) - eased to 52.8 in August, from 52.9 in July. It is also reported that the survey showed output prices increasing in the month of August, possibly leading to higher inflation rates as compared to July's rate of 6.9%. With the same happening, the input price pressures remained elevated, thereby giving little room to the Reserve Bank of India (RBI), which meets in two weeks, to cut interest rates and support growth.
Auto stocks are currently trading mixed with TVS Motor and Tata Motors trading weak while Bajaj Auto and Maruti Suzuki are trading firm. Despite Maruti Suzuki's production being hit by the month long factory close at Manesar, sales of passenger cars showed encouraging sign during the month of August 2012. Maruti's sales dropped by 35% YoY while Tata Motors' sales volumes increased by a third during the month. Volumes of the latter were largest on account of an over five-fold increase in sales of Nanos. Mahindra & Mahindra (M&M) reported a 30% YoY jump in sales led by higher sales of diesel vehicles (largely utility vehicles). As per the management of M&M, the company is quite happy with its performance given the overall dull environment and high interest rates. It is reported that Hyundai Motor India Ltd (HMIL) reported an 8% decline in total sales during the month. The decline was largely due to lower exports. Domestic sales were by about 6% YoY.
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Indian share markets end deep in the red with the Sensex down by 1,939 points and the Nifty ending down by 568 points.
ONGC share price is trading down by 7% and its current market price is Rs 118. The BSE OIL & GAS is down by 4.0%. The top gainers in the BSE OIL & GAS Index is CASTROL INDIA (up 1.3%). The top losers are ONGC (down 7.1%) and GAIL (down 6.3%).
ULTRATECH CEMENT share price is trading down by 5% and its current market price is Rs 6,487. The BSE 500 is down by 3.4%. The top gainers in the BSE 500 Index are SOUTH IND.BANK (up 10.4%) and JAGRAN PRAKASHAN (up 10.0%). The top losers are ULTRATECH CEMENT (down 5.0%) and BAJAJ FINSERV (down 6.3%).
JAGRAN PRAKASHAN share price is trading up by 10% and its current market price is Rs 60. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are JAGRAN PRAKASHAN (up 10.1%) and RCF (up 11.0%). The top losers are MAHINDRA CIE AUTO. and AJANTA PHARMA (down 0.1%).
UPL share price is trading down by 5% and its current market price is Rs 589. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are UPL (down 5.4%) and BAJAJ FINSERV (down 6.2%).
ICICI LOMBARD GENERAL INSURANCE share price is trading down by 5% and its current market price is Rs 1,479. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are ICICI LOMBARD GENERAL INSURANCE (down 5.2%) and BAJAJ FINSERV (down 6.2%).
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