Majority of the steel stocks are trading in red with Tata Sponge and Maharashtra Seamless being the biggest losers. Tata Steel recently stated that it would be starting work on the proposed plant in Karnataka only after getting the allocation of an iron ore mine that would have at least 300 m tonnes of reserves. As per the company's management, while Tata Steel has identified the land, it is awaiting allocation of the same. The company would be spending about Rs 300 bn for this plant, which would have a capacity of 6 m tonnes per annum. The company plans to build the facility in two equal phases. As per the management, reserves of at least 300 m tonnes would be sufficient to meet the raw material demand for at least three decades of the plant life. Tata Steel stock is marginally down.
Most of the auto stocks are trading positive led by Maruti Suzuki and Escorts. As per a leading financial daily, Jaguar Land Rover (JLR) sales fell by 4% YoY in September with 26,461 vehicles sold for the month. This is the first monthly fall in JLR's sales since July 2011 and is likely to adversely impact parent company Tata Motors. JLR was acquired by Tata Motors in 2008 and has insulated the company from the demand downturn in its branded cars and trucks in the domestic market. Reportedly, the company's overall global vehicle sales fell for the first time for the month of September, registering a 4% decline to 1.03 lakh vehicles. Tata Motors stock is down 1.8%.