Indian indices continued their southbound journey on the back of heavy selling in heavy weights over the previous two hours of trade. Stocks from consumer durable and banking space are trading firm while stocks from the realty and capital goods space are trading weak.
The BSE-Sensex is trading down by 135 points while NSE-Nifty is trading 46 points below the dotted line. BSE-Midcap and BSE-Smallcap indices are both trading lower by 0.6%. The rupee is trading at 45.52 to the US dollar.
Auto stocks are trading weak lead by Bajaj Auto and Ashok Leyland. As per a leading financial daily, Volkswagen (VW) plans to extend its global partnership with Suzuki in India by tapping the manufacturing and design facilities of Maruti. VW and Suzuki are jointly developing a small car. This is likely to be produced at Maruti's Manesar plant. VW intends to use this production facility to raise its presence and market share in India. In fact, Volkswagen India chief Mueller has said that the company is looking at capturing an 8% market share in the next 3-4 years. This translates into a sale of 250,000 cars per annum. VW's total capacity stands at only 110,000 cars per annum and it will take another 2-3 years to reach full utilization on the existing capacity. The company intends to get the balance numbers from Maruti.
Engineering stocks are trading mixed with Punj Lloyd and Jyoti Structures trading firm while L&T and Blue Star are trading weak. As per a leading financial daily, wind turbine manufacturer Suzlon Energy Limited (SEL) has bagged an order of Rs 11.5 bn from Kolkata's Techno Electric Group to develop over 202.2 mw wind power projects. The order comprises of 24 units of Suzlon's 2.1 MW wind turbine generators (WTGs), 34 units of 1.5 MW WTGs and 48 units of 2.1 MW WTGs. The first phase of 101.4 mw will be commissioned in Tamil Nadu by June 2011. The second phase of 100.8 mw will be commissioned by December 2011. This order stands to benefit Suzlon as it has been facing a tough time recently due to low sales and high debt.