Indian markets dip further

Fri, 16 Oct 11:30 am

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   09:30 am   

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After opening tad below the dotted line, the Indian Indices added to their losses and are currently trading in the red. Sectoral indices are trading on a mixed note with banking and FMCG stocks leading the losers. However, capital goods stocks are trading in the green.

The BSE-Sensex is trading lower 58 points (down 0.2%) and the NSE-Nifty is trading down 23 points (down 0.3%). The S&P BSE Midcap index and the S&P BSE Smallcap index are both trading flat. The rupee is trading at 64.96 to the US$.

Stocks in the automobile space are trading on a positive note with Force Motors and Maharashtra Scooters leading the gainers. India's largest automobile company Tata Motors has reported 21% increase in its global sales during the month of September this year, including that of Jaguar Land Rover (JLR) vehicles. The company has sold 97,102 units during the month of September as against 80,104 units in the corresponding period last year.

In the passenger vehicles category, global sales stood at 63,334 units, up 40%. Sales of luxury brand Jaguar Land Rover rose by 55% to 51,074 units. However, sales of commercial vehicles in September declined by 3% to 33,768 units from 34,918 units a year ago.

As per our auto sector analyst, Radhika Pandit, the September numbers for JLR are healthy considering that the last two quarters saw some slowdown in volumes. This was largely on account of the crisis in China, which for the last couple of years had been the fastest growing market for JLR and therefore an important growth driver. With the introduction of new models, Tata Motors expects JLR volumes to ramp up going forward. Presently, stock of the company is trading in the green, up by 0.8%.

Energy stocks are trading on a mixed note with BPCL and HPCL witnessing maximum buying interest. As per a leading financial daily, oil regulator PNGRB-Petroleum and Natural Gas Regulatory Board- has ordered enchasing part of GAIL India Ltd's performance bank guarantee. This was after the state-run firm failed to achieve financial closure of the Surat-Paradip gas pipeline project.

For this, the regulator has ordered the enchasing of 25% of the Performance Bond submitted by GAIL. It was reported that the company failed to achieve financial closure of the project despite being provided considerable long period of more than 42 months.

GAIL has moved to the Delhi High Court for the matter. It had furnished a performance bond of Rs 200 million as a guarantee for timely commissioning of the project. Scrip of the company is presently trading down by 0.2%.