Continuing its losing streak, Indian equity markets lost further momentum today and closed on a weak note. Marred by global cues on account of worries over likelihood of Fed rate hike, the markets plunged across the board. While, BSE Sensex lost steam and closed down sharply by 208 points, the NSE-Nifty too was seen down by 59 points. That said, both the BSE Mid Cap and the BSE Small Cap indices maintained the steady momentum; albeit marginally and were up by 0.08% and 0.60% respectively. While consumer durables' stocks observed maximum selling pressures, stocks from realty space witnessed certain buying interest.
On the global front, the Asian indices closed the day on a weak note. The European indices however have opened on a mixed note. The rupee was trading at Rs 60.93 to the dollar at the time of writing.
Society of Indian Automobile Manufacturers' (SIAM) data suggests that car sales in India have grown for the fourth successive month, posting an increase of 15.16% in August. This definitely makes even SIAM believe that the auto sector is on the verge of turnaround; albeit gradual. The domestic car sales in August for the current year has stood at 1,53,758 units as against 1,33,513 units in the same month a year before. The month-on-month numbers are seen to be improving gradually. In the April-August period this fiscal, car sales have grown by 5.24% to 7,35,873 units as against 6,99,263 units in the same period year ago. Despite interest rates being high, car sales growth has been witnessed primarily on account of positive sentiments and hefty discounts from the companies. Even motorcycle sales have observed an upsurge. According to SIAM, motorcycle sales during the month grew by 14.45% to 9,10,312 units as against 7,95,411 units in August the previous year.
In another set of news, a leading daily states that the Indian factory output has slowed further in July as core industries like mining and cement manufacturing were hampered by the monsoons. That said, the inflation on the other hand has been seen softening in August. The industrial production or IIP was seen growing 1.8% YoY in July. This is slower than the June month increase of 3.4%. With weak mining activities during monsoons and with the expectations of a lagged manufacturing activity, IIP is expected to remain sluggish. The first September data has indicated that infrastructure output growth slowed to a three-month low of 2.7% in July. This also gives a fair glimpse of the economic growth in the third quarter. The economic growth for April-June quarter has been at 5.7% and it turned out to be the fastest in two and half years.