Profit booking during the closing stages took its toll and as a consequence, indices in the Indian stock markets closed the day well below the breakeven line. While BSE-Sensex edged lower by around 100 points, decline on the NSE-Nifty came in the region of 30 points. The BSE Mid Cap and BSE Small Cap indices also displayed a sombre mood and closed lower by 0.7% and 0.4% respectively. Nearly three stocks lost ground for every one stock that gained on the Sensex today.
While most Asian indices also closed in the red today, Europe is trading mostly positive as of now. The rupee was trading at Rs 53 to the dollar at the time of writing.
If the fluctuation in indices over the past few months is any indication, there seems to be a lot of uncertainty with regards to the future. And this may be not without reason. With Government intervention in the western markets at its peak perhaps, investors seem to be getting no clear signals as to which way the economies are headed next. And while there is near term uncertainty in India as well, any overreaction by investors should be seen as an opportunity to buy into the long term growth story which appears quite certain according to us.
Auto ancillary players closed mixed today with leading gainers being Sona Koyo and Amtek auto. Tyre major Apollo Tyres too closed the day in the green. As per reports, Apollo Tyres is expecting sales volume growth of 20% in the current fiscal. Besides, it is also expecting improvement in margins in Oct-Dec period as compared to the first half of the current year. It should be noted that the company's new Chennai facility has been commissioned and hence using the same, it aims double its exports to 1,00,000 pieces a month over the next six months. Apollo Tyres produces the entire range of automotive tyres for ultra and high speed passenger cars, truck and bus, farm, off-the-road, industrial and specialty applications like mining, retreaded tyres and retreading material. The stock closed higher by 1% today.
Lupin was another of the mid cap counters that closed stronger today. The price received a fillip perhaps on account of reports that the firm is planning to introduce its Japanese business model of expansion through acquisitions in other markets like Latin America, Europe and Canada. Importantly, the Japanese market is expected to contributed US$ 300 m to the company's topline on account of its recent acquisition there. The company has also tied up with state-run Farmanguinhos in Brazil for marketing its products, while in Argentina it has arrangements with third parties to distribute WHO-approved TB drugs. It already has its subsidiaries in countries like Germany and UK.