Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Metal stocks lead the downfall
Thu, 20 Oct 11:30 am

Indian stock market indices are trading weak over the last two hours of trade on the back of sustained selling activity across index heavyweights. Metal and Oil and Gas stocks witnessed maximum selling pressure.

The BSE-Sensex is down by 285 points, while the NSE-Nifty is down by 92 points. BSE Mid Cap and BSE Small Cap indices are down by 0.7% and 0.48% respectively. The rupee is trading at 49.78 to the US dollar.

Steel stocks are trading weak led by Sesa Goa and NMDC. According to a leading financial daily, the follow on public offer (FPO) of Steel Authority of India (SAIL) has met with more hurdles. This is because SAIL does not want to raise fresh equity in the view of capital requirements, surplus cash and choppy markets. The finance ministry was planning to divest 10 % in SAIL in two separate tranches, while the company would also raise additional equity of to the extent of 10 %. Now the ministry will take the Cabinet nod once again to sell its stake through a follow-on public offer. The government holds 85.82% stake in SAIL. A 5% stake sale will fetch it over Rs 20 bn at the current market capitalization. The government was hoping to fetch Rs 40 bn from the stake sale.

Auto stocks are trading in the red. Maruti Suzuki and Eicher Motor are the biggest gainers while Hero Motocorp and Tata Motors are biggest losers. Hero Motocorp has declared results for the quarter ended September 2011. The company has reported a growth of 28% YoY and 19% YoY in sales and net profits respectively. The growth in revenues was due to 20% increase in sales volumes. The company sold over 1.5 m units during the quarter and had sold around the same number of units in 1QFY12 as well. Operating margins increase by 2.4% YoY to 15.8%, on the back of lower staff costs and significant reduction in other expenditure. Operating profits grow by 51% YoY during 2QFY12. Net profit growth at 19% YoY is slower than the growth in operating profits on account of a surge in depreciation charges.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Metal stocks lead the downfall". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 19, 2018 11:57 AM