After trading in the positive territory during post noon trading session, the Indian equity markets gathered steam and closed the day in the green. While the BSE-Sensex today closed higher by 267 points, the NSE-Nifty closed higher by 75 points. However, Midcaps and Smallcaps closed weak today. Both BSE Mid Cap index and BSE Small Cap index closed lower by 0.08% and 0.1% respectively. Banking stocks were the biggest gainers today.
As regards global markets, Asian pack closed strong today. The rupee was trading at Rs 61.83 to the dollar at the time of writing.
Auto stocks ended the day on a strong note. Tata Motors and HeroMoto Corp were the biggest gainers. Auto major, Tata Motors is planning to treble its CV exports by 2018-19. It is targeting key regions like Russia and ASEAN so as to increase its share of exports. The medium and heavy commercial vehicle segment is already showing signs of recovery. In the last 2 months it has grown in excess of 20%. The company is aiming for a 15% growth in this space in the current fiscal. If the growth indeed materializes and export markets also pick up, volumes of the company in the CV space are likely to show strong improvement over the coming years. This shall help Tata Motors gain market share and tide competition.
As per the new mining law, companies will be allowed to sell their mines henceforth. At present, the law does not permit companies to sell mines. Hence, whenever acquisitions happen in the mining space the mining leases get transferred to the acquirer. As per the new law, companies will be free to sell mines from now on. At the time of sale, the seller will have to pay some fee to the government. And the state government will check if the buyer meets all the criteria before transfer happens. This shall bring in more transparency into the sector.