Backed by persistent buying in index heavyweights, Indian share markets continued to trade at the elevated levels in the post-noon trading session. Barring pharma and FMCG, all the sectoral indices are trading positive with realty, metal and banking stocks leading the pack of gainers.
Majority of auto stocks are trading positive with Tata Motors and Ashok Leyland being the biggest gainers. As per a leading financial daily, Tata Motors is foraying into the automobile market in Indonesia. The company has set up a 100% owned subsidiary in Jakarta, PT Tata Motors Indonesia. It will manufacture both passenger cars and commercial vehicles. Tata Motors is also planning to make significant investments to source components locally. The company is expected to launch its vehicles in the Indonesian market next year.
The hotel stocks are trading mixed with Taj GVK and The Indian Hotels being the biggest gainers and Oriental Hotels and EIH being the biggest losers. As per Federation of Hotels and Restaurants Association of India (FHRAI), more hotel rooms need to be added to meet the growing demand from overseas and domestic tourists. The apex body for hotel and restaurant industry in India has said that an estimated 1.8 lakh guestrooms need to be added in the organized sector whereas 25 lakh new guestrooms would be required in the unorganized sector. The Ministry of Tourism has set a target to increase foreign tourist arrivals from 6.2 m to 11 m by 2016 with 1,496 m domestic tourist visits. According to FHRAI, the drop in hotel occupancy rates from 66.8% to 62.1% in December 2011 was on account of oversupply in rooms in certain pockets of the country such as Pune, Bangalore and Delhi. The industry body feels that the demand is high in cities such as Mumbai and Chennai.