With continued weakness in index heavyweights, Indian share markets continued to trade below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading in the green with power, realty and capital goods stocks being the biggest gainers. Consumer durables, IT and FMCG are among the few stocks trading in the red.
Majority of the automobile stocks are trading in the green, with Hero MotoCorp and Mahindra & Mahindra being among the major gainers. Maruti Suzuki and Ashok Leyland are among the few stocks trading in the red. As per a leading financial daily, Ashok Leyland has launched an intermediate commercial vehicle (ICV), the Boss range of trucks that cater upto 12.9 tonne haulage segments. Reportedly, the ICV segment has been growing at a fast pace. The company's share in this segment has grown backed by its successful Ecomet range. The company has launched the Boss truck range in Madurai, Tamil Nadu before coming out with a nation-wide launch. The trucks are manufactured in the company's largest plant in Pantnagar and are available in two variants priced in the range of Rs 10.5 - Rs 12 lakh. Ashok Leyland's revenues fell by 22% YoY in the June 2013 quarter. This poor performance was on account of the sluggish conditions in the Medium & Heavy Commercial Vehicle (MHCV) segment.
Telecom stocks are trading mixed. While Mahanagar Telephone Nigam Limited (MTNL) and Tata Communications are amongst the top gainers, AGC Networks and Idea Cellular are leading the pack of losers. As per the leading financial daily, the Bombay High Court has stayed Rs 15 bn tax demand notice on Idea Cellular. This notice was raised during 2010-11, and was related to transfer of assets by the telecom company to its unit, Aditya Birla Telecom (ABTL). The said stay order has come after Idea Cellular had approached the court as the Income Tax department insisted on the tax payment and not wait till the appeal was resolved. In 2009-10, Idea's Bihar operations were transferred into ABTL. While the demerger was done under an approved Scheme of Arrangement, the tax authorities contended that some of the transfers were taxable and hence raised a tax demand during the financial year 2010-11. The stock is trading down by 2%.