Indian share markets pared early gains and fell below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading in the red with IT and consumer durables stocks being the biggest losers. However, auto and pharma are among the few stocks trading strong today.
Most of the auto stocks are trading in the green led by Mahindra & Mahindra and Eicher Motor. Maharashtra Scooters and Tata Motors are among the few stocks trading in the red. As per a leading financial daily, Society of Indian Automobile Manufacturers (SIAM) has said that the car sales growth in FY15 is expected to be below its earlier sales target of 5%. As per the industry body, the growth cannot be sustained on positive sentiment alone and there should be a revival in the real economy to foster growth in the auto sector. The sale of passenger vehicles fell by 7.5% to 2.2 lakh units in October. This fall comes after growth witnessed in the preceding five months. The sales of passenger cars were lower by 2.6% in October 2014.
Most of the energy stocks are trading in the red with MRPL and Petronet LNG being the major losers. Oil India band GAIL are among the few stocks trading in the green. According to a leading financial daily, the government has clarified that domestically produced cooking gas (LPG) should be sold to state owned oil marketing companies alone for subsidized sale to consumers. The non-state LPG sellers or the parallel marketers cannot source the fuel from domestic refiners. They have to necessarily import LPG for selling it in the domestic market. Parallel marketers were allowed to sell domestic LPG from 2005. LPG is produced by public sector firms like Indian Oil Corp (IOC) as well as private companies like Reliance Industries. Reliance Industries had earlier contested the view that all domestic LPG should necessarily be sold to state firms. Reliance Industries stock is trading up marginally.