Monday April 2, 11:30 AM
In a tough spot! |
|
By Equitymaster.com
The indices lost further ground during the previous hour of trade as selling pressure intensified amongst index heavyweights. Stocks from the banking, auto and engineering sectors are witnessing significant pressure currently. The overall market breadth is negative with the decline to advance ratio poised at 4.8 to 1 on the NSE.
The BSE Sensex is trading at 12,698 (down 394 points) while the NSE Nifty is trading at 3,698 (down 124 points). The rupee is trading at 43.26 to the dollar.
Textile stocks are trading weak with Bombay Dyeing (BDYN.BO, news) (down 5%), Century Industries, Raymond (down 3% each) and Arvind Mills (ARMI.BO, news) (down marginally) being the major losers. According to a leading business daily, the ASSOCHAM (Associated Chambers of Commerce and Industry in India) expects the Indian textiles exports to rise by 25% YoY to US$ 25 bn during 2007-08. The expected spurt in exports is on account of the US and European markets not being able to produce the desired quality products, compelling consumers to use textile imported from India and other Asian markets. The industry expects to garner investments of Rs 100 bn under the Technology Upgradation Fund Scheme (TUFS), which extends financial assistance for upgradation of technology to the textile industry by way of interest rate subsidy. As a matter of fact, under the TUFS, loans worth Rs 14 bn have already been disbursed.
Automobile stocks are currently trading weak with Bajaj Auto (BJAT.BO, news) , M&M, Tata Motors (down 6% each), Hero Honda (HROH.BO, news) and Maruti Udyog (down 5% each) being the major losers. According to a leading business daily, India's second largest motorcycle manufacturer, Bajaj Auto, yesterday announced its sales figures for the month of March 2007. The company has recorded a slump in its overall sales as the number of units sold registered a 9% YoY decline. The dismal performance in the sales of two wheelers (especially motorcycles) has hurt the company's performance as the sales in this segment registered a negative growth of 10%. However, its total sales for FY07 are up 19% YoY (the company sold 2.7 m units during the full year). Bajaj Auto has set itself a sales target of 3 m units for FY08, a growth of 10% YoY. The rise in interest rates and a consequent impact on two-wheeler demand can, however, hurt this growth in the current fiscal.
|
