Automobile stocks are trading mixed with Force Motors and Tata Motors leading the gains while Tube Investments and Escorts are the top losers. As per a leading daily, scooter sales have witnessed rise in a slowing Indian market. The domestic sales grew 21% in the first 6 months of the fiscal. This is as against 0.79% decline in the sales of motorcycles. The rise in demand is attributed to growing urban infrastructure, rising number of women scooter riders. Looking at such growth prospects, two-wheeler companies are hiking up their capacities. Suzuki Motorcycle will be adding 10,000 scooters to its monthly production by March next year. Also, Honda Motors and Bajaj Auto have decided on their respective fresh strategies to cater to the growing scooter segment in the country and increase their presence in the same.
Steel stocks are trading in the red led by Tayo Rolls and Adhunik Metaliks. According to a leading financial daily, Steel Authority of India Limited (SAIL) is planning to invest US$ 8 bn in Chhattisgarh. The steel company has already invested US$ 12 bn in the state and another US$ 8 bn is in the pipeline. SAIL is in an expansionary phase and is ramping up production capacity at its Bhilai steel plant too. Post the development, capacity will increase from 4 m tonnes per annum to 10 m tonnes per annum. Initially the capacity will expanded to 7.5 m tonnes per annum and later on to 10 m tonnes per annum. Overall, SAIL plans to expand capacity to 18 m tonnes per annum by fiscal end. Earlier the management had announced its aim to increase its market share up to 30% by 2020 and expand its capacity to 45 MT by then.