After trading in the negative territory during post noon trading session, the Indian equity markets lost further ground and closed in the red. While the BSE-Sensex today closed lower by 298 points, the NSE-Nifty closed lower by 93 points. However, Midcaps and Smallcaps closed in the green today. The BSE Mid Cap index was up by 0.15% while the BSE Small Cap index closed higher by 0.02%. oil and gas and IT stocks were the biggest losers today.
As regards global markets, Asian pack closed strong today. The rupee was trading at Rs 63.5 odd levels to the dollar at the time of writing.
Auto stocks have ended the day on a mixed note. 2014 has been a dismal year for the auto industry in general. Excluding two wheelers, both commercial & passenger vehicle volumes either declined or grew marginally. However, it seems that the next year i.e. 2015 will get a considerable head start in terms of volumes as quite a few new launches are expected to hit the street. For instance, Maruti is planning to launch a new SUV next year. An LCV is also expected from this auto major next year. Again, Hyundai is planning to launch a new compact SUV while Nissan and Renault have plans to launch a multi-purpose vehicle (MPV) in 2015. Considering a slew of launches planned in 2015 volumes are expected to get a huge tailwind.
Coal India and GAIL have signed an agreement to invest Rs 90 bn in a plant whereby they shall convert coal into gas and use it as a fuel to manufacture fertilizer. These two companies along with RCF and Fertlizer Corp of India shall develop the plant in Odisha by 2019. It is estimated that the plant will produce 1.3 million tonnes of urea and other fertilizers annually. Considering that India is deficient in urea production the new plant will certainly help bridge the deficit gap.