Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

IT, telecom stocks not in favour today
Mon, 17 Dec 01:30 pm

The Indian markets continued to languish in the red during the post noon trading session. Heavyweights from the telecom and IT sectors are amongst the top underperformers at the moment, while those in the metal and realty spaces are finding favour from investors.

The Sensex today is trading lower by about 50 points (down 0.3%), while NSE-Nifty is trading lower by about 15 points (down 0.2%). Stocks from the midcap and small spaces are however in favour today with the BSE Mid Cap and the BSE Small Cap indices up by 0.6% each. The rupee is trading at 54.69 to the US dollar.

Auto stocks are currently trading on a high note with the stocks of Maruti Suzuki, Bajaj Auto and Mahindra & Mahindra leading the pack of gainers. As per a leading daily, the Tata Group Chairman, Mr Ratan Tata has stated that he does not plan to move the production of Jaguar and Land Rover (JLR) to India. The reason for this is the tax structure. The taxes and duties in India make assembly even costlier than imports. Instead Tata Motors are planning to set up a plant in China to manufacture these cars which will be exported all over the world. Currently JLR does not have the scale of manufacturing. It is able to sell 1,000 Jaguar cars a year. As per Mr Tata manufacturing needs to be expanded by nearly four to five times to justify Tata Motors' investment.

Telecom stocks are currently trading weak with Bharti Airtel and Idea Cellular leading the losses. As reported by a business daily, the GSM Association believes that India is no more an attractive telecom market for global players. A key factor for the same is the uncertain regulatory environment. The body's rationale behind the same is that quite a few foreign acquisitions and investments are taking place across the globe, but there is no focus on India, especially compared to how it was a few years ago. Further, the companies in India are themselves looking to expand operations in countries across the world, despite the overalls lowdown, which is another indication towards the same. Some of foreign opportunities include Burma, a region that is attracting a lot of interest.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "IT, telecom stocks not in favour today". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.