After opening the day in red the Indian stock market indices have remained under pressure in the morning trading session. Selling pressure is highest in banking stocks.
The BSE-Sensex is trading down by 79 points (0.30%) and the NSE-Nifty is trading down by 23 points (0.30%). The S&P BSE Midcap index is trading up by 5 points (0.04%), while the S&P BSE Smallcap index is trading down by 8 points (0.07%). The rupee is trading at 64.12 to the US dollar. Gold and Silver prices are trading at Rs 27,005 per 10 grams & Rs 36,979 per kilogram respectively.
Stocks in Steel sector are trading on a mixed note with Tata Steel trading down by 0.62% and Steel Authority of India Ltd (SAIL) trading up by 0.34%. A dispute had risen between steel workers union and Tata Steel UK with the later proposing that employees will need to work till the age of 65 to ensure full pension benefits otherwise they would lose 5% of pension benefit for every year short of 65 years. The steel workers union has threatened to go on strike from 22nd June. Tata Steel UK Ltd in response to this has approached the British conciliation Advisory, Conciliation and Arbitration Service (Acas) to hold talks with the steel workers union in the ongoing pension dispute and resolve the same.
Stocks in automobile sector are trading on a mixed note with Hero MotoCorp trading down by 0.15% and Eicher Motor trading up by 1.37%. Hero MotoCorp has dominated the two wheeler market with the largest market share of around 52%. The local two-wheeler unit of Japanese Honda Motor is at the second position however it is quite a distance behind from Hero MotoCorp but it is successfully and steadily narrowing the gap. The units sold by Honda in April-May period was higher than the sales units reported by Bajaj Auto and TVS Motors combined. The two wheeler market has remained sluggish because of the subdued demand from the rural areas. The demand from rural areas has been impacted because of the damage caused to the Rabi crop due to unseasonal rain and hailstorms and with the Indian Meteorological Department (IMD) forecasting that the country is likely to get only 88% of the normal rainfall this monsoon season which has impacted the agricultural sector and the rural demand.