Indian share markets continued to trade within a range but remained above the dotted line in the post-noon trading session. Majority of the sectoral indices are trading positive with IT, auto and pharma stocks leading the pack of gainers. Realty, banking and metal stocks are among the losers.
Majority of the automobile stocks are trading in the red with Maharashtra Scooters and Eicher Motors leading the pack of losers. As per a leading financial daily, Maruti Suzuki is increasingly focusing on exporting vehicles to emerging markets in Asia and Latin America. Around 82% of the 47,000 vehicles exported by Maruti during the period April-August 2012 were to non-European markets. In 2009-10, its vehicle exports to non-European markets were a mere 23%. The change in the company's export strategy has been after the European government discontinued the car scrappage schemes in 2009 resulting in falling car exports to Europe. The car scrappage schemes were essentially government sponsored budget schemes for the promotion of replacing old vehicles with modern ones. Amongst emerging markets, Africa is the biggest market (30% market share) followed by Latin America (28% market share) for Maruti's vehicles. Apart from Maruti 800, the company has been selling small cars such as the Alto, the Alto K10 and the A-Star in Africa. To diversify its product-mix, the company has started shipping out Dzire sedan to Africa. Maruti Suzuki stock is up 1%.
As per reports, India's exports fell by 9.7% during the month of August 2012 to US$ 22.3 bn. Imports on the other hand, declined at a slower pace of 5.1% to US$ 38 bn, thereby widening the trade deficit to about US$ 15.7 bn. This is higher than July's figure of US$ 15.5 bn. Oil imports increased by almost 3% to US$ 12.8 bn, while non-oil imports declined by 8.7% to US$ 25 bn. As for the data relating to the year till date, total exports stood at US$ 119.9 bn, lower by 5.96%. During the same period, imports slid by 6.2% to US$ 191.1 bn. Given the data, it seems that India may find it difficult to meet the export target of US$ 360 bn; six months into the year, the target is still away by about 66%.