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?  

Autos drive the mkts higher
Fri, 26 Mar Closing

Led by gains in auto and banking stocks, Indian markets closed strong today. IT and telecom stocks were among the few losers. On the broader BSE, one stock gained for one that closed in the red. The BSE Sensex and NSE Nifty closed with gains of around 85 points (0.5%) and 15 points (0.3%) respectively. Midcap stocks followed suit, as the BSE Midcap index closed up by 0.7%. The rupee was trading at 45.33 to a US dollar at the time of writing.

Auto stocks closed strong today. In fact, the BSE-Auto index was the top gainer (up 1.7%) among all BSE indices. Key gainers from the sector included Bajaj Auto, Tata Motors, and Maruti. Gains in Maruti followed reports that the company is looking to hike its car prices as BS4 (Bharat Stage 4) emission norms get implemented from April this year. BS4 will be applicable to NCR (National Capital Territory of Delhi) and other ten cities like Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Surat, Kanpur and Agra.

The company has not quantified the extent of price increase due to application of this new norm. In an interview with The Economic Times, Maruti's Chairman Mr. RC Bhargava has also hinted that with interest rates going up or likely to go up in the course of this year, it will also put some upward pressure on car prices. Keeping all that in mind, he does not expect the total demand growth to be anywhere near what the sector has witnessed in FY10. In fact, he would be surprised to see an even 10% YoY growth next year (FY11).

Pharma stocks closed mixed. While gains were seen in Novartis and Aventis, selling pressure marked trading in Pfizer and Dr. Reddy's. Earlier, Pfizer announces its 1QFY10 results. The company works on a financial year that ends in November. Its sales and profits have each grown by 9% YoY. Operating margins have improved to 25%, from 23% in 1QFY09.

The company has forayed into branded generics in a bid to gain access to a wider market and bolster sales. Two products have already been launched in this category. It is also looking to increase its reach to doctors and the focus will be more on metros and tier I, II, III and IV cities before it ventures into rural areas.

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 "Autos drive the mkts higher". 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.