Indian stock market indices have been witnessing selling pressure over last two hours of trade. Among the sectoral indices, oil and gas and IT are losing the maximum. However, healthcare and auto are among the gainers.
Automobile stocks are trading firm led by Escorts and Bajaj Auto. As per a leading financial daily, M&M's arm Mahindra 2 Wheelers is looking at raising funds from private equity players to the tune of Rs 2 bn. This will be done by divesting a minority stake in the firm. This step is being taken despite the parent company having abundant cash with itself. This is expected to improve the performance of the 2 wheeler company. It may be noted here that Mahindra 2 wheelers since its inception has not been able to do much in this segment. Earlier Mahindra 2 wheelers had come into existence when Mahindra acquired an 80% stake in Kinetic Motors. The business has not been doing well. In fact, in the past it had to discontinue sales of its 106cc bike Stallio because of some technical problems. The bike had been in market for less than 5 months at that time.
Private Banking stocks are trading weak today led by Karnataka Bank and Yes Bank. As per a leading financial daily, Axis Bank is monitoring the exposure it has to infrastructure projects. The other banks including ICICI Bank have also turned cautious regarding the same because of the slowdown. A lot of infrastructure projects have been stalled either because they did not get necessary clearances or the government's discouraging policy framework. Axis Bank already has very limited exposure to the infra sector. But, in the light of all this, the private sector bank wants to be extra cautious.