Indices in Indian stock markets continued with their falling streak today led by stocks from the metal, IT and energy space. Crisis in the euro zone and the rupee's sharp depreciation against the US dollar continues to spook investors, especially FIIs. The BSE-Sensex closed lower by around 163 points (down 1%), while the NSE-Nifty closed lower by around 46 points (down 1%). The BSE Mid Cap and the BSE Small Cap indices, however, bucked the trend and ended the day marginally higher.
As regards global markets, indices across Asia closed weak today while European indices have opened on a mixed note. The rupee was trading at Rs 52.39 to the dollar at the time of writing.
As per a business daily, auto major Mahindra & Mahindra (M&M) is eyeing acquisition opportunities in the farm equipment segment in South Korea. The company currently sells the tractor in the US under the Mahindra brand and these tractors are sourced from South Korean tractor manufacturer, Tong Yang Moolsan Company. The company is also planning at sourcing other farm equipment products from South Korea to sell in other markets as well.
M&M reported an impressive standalone revenue growth of 35% YoY during 2QFY11. Both the company segments - automotive and farm equipment reported strong growth during 2QFY12. Sales volumes of the company's 'automotive' division grew by 32% YoY during the quarter, and the company managed to retain its leadership in the UV segment with a market share of 54%. Other product segments such as the small load carriage segment (particularly 'Maxximo') and Gio did well to record an impressive growth of 48.9% YoY. The company also saw a strong rise in exports during the quarter.
State-owned Power Finance Corporation (PFC) is optimistic of registering a healthy loan growth of over 20% in the current fiscal despite some regulatory concerns hampering growth prospects of power sector. The company, which posted around 17% growth in the loan sanctions in the first quarter of current fiscal, witnessed a healthy 26% growth in advances during the second quarter and hence expects the momentum to continue.
Coal shortages, stringent environmental norms are some concerns facing the Indian power sector. Other key challenges include changing fuel quality & fuel mix; extended time between major outages and loss of experienced plant testing and operating personnel. However, PFC has witnessing some positive actions in the regulatory front. State government have announced plans of a power tariff hike for state electricity boards (SEBs) thereby bringing the much needed respite to the financial institutions, and reducing concerns relating to credit default by the SEBs.