The Sensex today is up by around 33 points (0.2%), while the NSE-Nifty is up by around 7 points (0.1%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% each. The rupee is currently trading at Rs 63.30 to the US dollar.
Barring Hero MotoCorp, most auto stocks have opened the day on a firm note with TVS Motor Company and Tata Motors leading the gains. As per a leading financial daily, the alarming rise in petrol prices has adversely impacted the demand for two-wheelers. After a series of nine price hikes, petrol prices have increased by about 20% in the last four months to record highs. Petrol prices in Mumbai now stand at Rs 83.63 per litre. Two-wheelers account for 60% of India's 16 million tonnes gasoline sales. Of this, about 30% comes from rural India. High petrol prices tend to hit two-wheeler sales because the running cost is a critical consideration for buyers in the mass product segments such as 100-125 cc motorcycles and 110 cc scooters. In July 2013, domestic two-wheeler sales stood at 1.13 million units marginally lower by 0.1% year-on-year.
Private bank stocks have opened the day on a firm note with IndusInd Bank, Yes Bank and Dhanlaxmi Bank leading the gains. India's fourth largest private sector lender Yes Bank has announced that it tied up a multi-tenor syndicated loan facility equivalent to US$ 255 million in dual currency from international lenders. The loan facility comprises US$ 180 million and Euro 58 million. The loan facility will be utilised for general corporate purposes and for trade finance. The facility has a maturity of 1 and 2 years with majority commitments coming in the 2 year tenure bucket. The loan has been widely distributed with commitments from 11 banks in eight countries across US, Europe, Middle East and Australia.