On the back of strong buying interest particularly in mid-cap and small-cap stocks, Indian equity markets continued to rally in the post noon trading session. Barring FMCG, all the sectoral indices are trading positive with metal, power and oil and gas stocks leading the gains.
According to a leading financial daily, the Indian economy continued to reel under slowdown with the gross domestic product reporting a growth of 5.3% in September 2012 quarter as compared to a growth of 6.7% clocked in the corresponding year-ago period. The economy had grown by 5.5% in the June 2012 quarter. The growth in September 2012 quarter has been hit by poor performance in the manufacturing and agricultural sectors. According to data released by the Central Statistical Organisation (CSO), the manufacturing sector grew by a marginal 0.8% as compared to 2.9% growth in the year-ago period. Similarly, the farm output increased by a mere 1.2% in September 2012 quarter as against 3.1% growth in the same period last year. During the first half of FY13, the economy grew by 5.4% which is considerably lower than 7.3% growth in the year-ago period.
Most of the engineering stocks are trading positive with Suzlon Energy and Bharat Bijlee, being the biggest gainers. A leading business daily has reported that Siemens India is looking at cutting is capital expenditure on the back of lower order inflows and profits. During the quarter ended September 2012, the company reported a loss of Rs 550 m as against a profit of Rs 1.8 bn during the corresponding quarter last year. As per the company's senior management, cost cutting efforts are being implemented within the company to improve profitability levels. The company has also cited the uncertain business environment as a reason for all bringing in these measures. Further, it is reported Siemens will also be focusing on its low cost and high technology 'SMART' product orders in the coming future. These orders are believed to form nearly 15% of the order inflow. The contribution of these products has increased substantially over the past few years.