Indian equity markets have continued in green during the previous two hours of trade. The most noticeable upward movement has been witnessed in the Real Estate sector while the Oil and Gas sector is facing maximum selling pressures.
Auto stocks are trading on a mixed note with Tata Motors and Escorts leading the gains while Hero Motocorp and Force Motors are facing selling pressures. According to a leading financial daily, Karl Slym, Managing Director of Tata Motors has initiated a major restructuring exercise to become the second largest car maker in sales by 2020. The Company has also come up with a common vision statement for its two segments: commercial vehicles and passenger cars instead of continuing with the earlier norm of continuing with separate vision statements for the two segments. The Company is also moving towards a strategy to integrate sourcing within the two business verticals. Karl Slym also shared the key weakness areas and its strategy to change. According to him, lack of new or refreshed products and poor perception about quality of products are impacting the sales of passenger cars. The Company is thus focusing on investing in product development, the fruits of which will take at least two years.
Engineering stocks are also continuing on a mixed note with Finolex Cables and Punj Lloyd leading the gains, while AIA Engineering and Everest Kanto Cylinder emerging as the worst losers. Avantha Group company, Crompton Greaves has entered into a deal to buy Karma Industries, a Himachal Pradesh based CFL manufacturing company for a sum of Rs 145 million. This will be the twelfth acquisition that the Company has made since 2005. The new business will form a part of Crompton's consumer business division and will double the Company's CFL manufacturing capacity, thereby reinforcing Crompton's presence in the rapidly growing Indian consumer market. The new facility can manufacture 2 million lamps per month, providing immediate capacity and offering a complete range of CFL lamps.