Auto stocks are trading in the green led by Bajaj Auto and Force Motors. According to a leading daily, Mahindra & Mahindra (M&M) has concluded the purchase of Navistar's stake in Mahindra Navistar Automotives Limited (MNAL) and Mahindra Navistar Engines Limited (MNEPL). Regulatory approval has been received for the deal in India and M&M has taken full control of operations at both MNAL and MNEPL. We may recollect here that in December 2012, Navistar decided to get out of its joint venture and instead focus on its North American core businesses. However, Navistar will still be able to source components from India while M&M will continue to provide engineering services to Navistar. Also, the Navistar Group will continue to support M&M through license agreements and extend necessary support to MNAL and MNEPL for continuing business operations.
Steel stocks are trading weak led by Adhunik Metaliks and Jindal Steel. As per a leading daily, Tata Steel's Kalinganagar plant is set start functioning from September 2014. At present nearly 27,000 workers are engaged in the plant's construction. Tata Steel has procured necessary equipments and almost 40% of the project work is already complete. Larsen and Toubro (L&T) has implemented major structural work packages. This project is first integrated steel plant of Tata Steel outside Jamshedpur. It is being set up in 2 modules of 3 m tonne each. However, the cost of the project has risen from Rs 154 bn to Rs 400 bn since the signing of Memorandum of Understanding (MoU) in 2004.