Indian Stock market closed positive on Friday with BSE Sensex gaining 126 points at 17,783 and NSE Nifty closing at 5366. During the week, the stock markets have been positive and technical experts are seeing 5400 as major resistance for NSE Nifty. Among various sectors, BSE Auto, Consumer Durables, BSE FMCG and BSE IT indices closed positive.
FMCG major HUL touched 52-week high today. The stock touched high of Rs 505.45 and close at Rs 503, registering gain of Rs 9. Among technology stocks, Infosys, TCS, Mahindra Satyam and Tech Mahindra were among major gainers.
Indian Stock Markets opened positive on Friday but lost ground in afternoon session. The NSE Nifty was in negative zone at 13.52 IST. Asian markets closed positive with Nikkei 225 and Hang Seng closing the session with gain of 0.75 per cent.
The US markets closed positive, on Thursday. Dow Jones touched intraday high of 13269, less than 100 points from 52-week high. European markets have opened positive with DAX, FTSE and CAC showing marginal gains during the early session.
Investment Bank Credit Suisse has downgraded Indian auto major Tata Motors after the company announced disappointing results for Q1. Tata Motors announced 12% increase in net profit for Q1 at Rs 2245 crore.
Credit Suisse has cut the target price for Tata Motors to Rs 218. The rating has been downgraded from "neutral" to "underperform". The vehicle sales estimates for JLR for year 2013 have been decreased from 374k units to 365k units.
Indian Stock Markets ended the recent rally as the depressing June IIP numbers deteriorated investors sentiment. Also, rating agency Moody's has reduced India's GDP growth forecast to 5.5 per cent for 2012-2012. BSE Sensex closed 40 points lower at 17560. NSE Nifty closed 15 points down at 5322.
Indian stock market closed flat after benchmark BSE Sensex touched an intraday high of 17,726. NSE Nifty closed at 5338. European Markets opened negative and this led to decline in Indian stocks during the end of the trading session.
FTSE was down by 0.5%, CAC 40 was down by 0.62 per cent at 3431 while DAX was down by 46 points at 6921. Asian Markets were mixed with Nikkei 225 gained 0.88% while Straits Times down by 0.51%. Hang Seng ended the day flat.
M&M's automotive segment volumes grew by 31.8% to 95k units. The growth is mainly attributed to the robust demand in SCV and three wheeler segments. Pick-ups and SCVs witnessed a volume growth of 46.8% to 27k units. New launches Maximmo and Gio contributed to this growth in volumes. Three wheelers dispatches also continued its surge, growing by 41.7% during the quarter to 16k units. Passenger utility vehicles grew by 17.7% to 42k units. We expect average realisation for automotive division to remain flat on sequential basis at Rs363k.
Mahindra & Mahindra (M&M) reported impressive dispatches for the month of December '10 across various categories. In the automotive segment, the passenger UVs segment grew by 24%. Pick-up & SCVs had a growth of 46% due to success of `Maximmo'. Logan clocked volumes of 896 units. 3-wheeler dispatches doubled to 5.9K units. Overall domestic automotive dispatches increased by 43% to 32.5K units as against our expectation of 26K units.
M&M, with a major rural presence, is expected to benefit from strong monsoons this year. New product launches in the automobile segment would help it record 20.8% and 13.2% growth in FY11 and FY12 respectively. The tractor segment too is expected to grow 10.3% in FY11 on increased demand from the construction and infrastructure sectors.
What will move the stock?
While the government has recently confirmed that it is scouting for a joint venture partner for ailing Scooters India, M&M has also said that t is very much in the race to bag the ailing PSU.
It is to be mentioned here that the Heavy Industries and Public Enterprises Minister Vilasrao Deshmukh recently said that the government is looking for a stake sale deal in Scooters India and there are many companies that have shown an interest in buying the same.
Perhaps the M&A strategy of M&M has not stopping for the short-run. After bagging companies like Reva and Ssangyong, the company has set its sight on the loss-making Scooters India.
While the company has recently confirmed that it is in the race for buying the government owned company but it has mentioned that its final decision will largely depend on the valuations of the company.
The utility vehicles and tractor maker Mahindra & Mahindra recently said that the company believes it will be able to complete the Ssangyong buy within a period of four months.
Moreover, the president for automotive sector and Member of the board, Pawan Goenka recently said that the company will have a South Korean executive for managing the company and the brand will remain intact.
One of the most-professional conglomerates in the country, M&M has recently said that its automotive division will launch its first motorcycle in the Indian market before the end of FY2011 in the Indian market.
The president for automotive sector and Member of the board, Pawan Goenka recently said that the company will make its foray into the motorcycle segment before the end of 2011 fiscal year.
It is to be mentioned here that M&M, a company which makes utility vehicles and tractors, ventured into two-wheelers two years ago and has already launched scooters.
A majority stake in the government operated Scooters India Ltd. has generated interest in the two major vehicle manufacturers in the Indian market namely Mahindra and Mahindra which produces utility vehicles and Atul Auto Ltd, which manufacture three-wheelers.
The government which owns about 95 5 percent of the shares in the company is planning to sell of about 74% of the stake. Scooters India is stated to have stopped its manufacture of two wheelers which it used to produce until 1997 under the trademark names of Lambretta and Vijai Super.
Under a major event in the Indian automobile circuit, the Auto major Mahindra & Mahindra recently said it has entered into an agreement to acquire a majority stake in beleaguered South Korean vehicle maker SsangYong Motor Company.
While on the one end, the government is planning to sell a majority stake in the ailing Scooters India, players like Indian utility vehicles maker Mahindra & Mahindra and three-wheeler maker Atul Auto Ltd are reportedly interested in the race to bag the company.
It may be noted here that government plans to offer upto 74 percent stake in Scooters India. For the uninitiated, Scooters India, in which the government owns about 95 percent stake, reported an Rs 220 million loss in the fiscal year ending March 2010, according to data on the BSE.
Ever since Mahindra &Mahindra has attempted to buy Ssangyong Motors, it has seen a decline in its value.
For the last five days, one of the leading makers of passenger and utility cars has witnessed a consistent and large fall in its share valuations for five trading sessions.
On Wednesday, August 11, the share went down by 4.3 per cent.
M&M has been named as the preferred bidder by Ssnagyong for its acquisition. The Korean automakers are under huge burden of debt and has got only 2 per cent market share of the whole Korean automotive sector.
There is no denying to the fact that Ssangyong Motors will provide the desired boost to the portfolio of the conglomerate M&M. The fact that the company is eying to bag close to 70% stake in the South Korean auto major testifies the importance of the ailing auto major to Mahindra.
It has been learned from the sources that the $450 million bid made by Ssangyong Motors is for more than a 51% stake in Ssangyong but the company may bid for over a 70% stake.
Since the point of time M&M has purchased Renault's share in the M&M-Renault JV, the company has done everything possible in order to ensure that the sales numbers achieve the desired growth in the Indian market.
It may easily be recalled that when the three-year-old joint venture between Indian auto major Mahindra & Mahindra (M&M ) and French carmaker Renault came to a dead-end, the future for the Logan was surely uncertain. However, with its aggressive sales push, M&M has been able to keep the product afloat in the domestic circuit.
Things are getting for the bankrupt South Korean automaker, Ssangyong Motors. After one of India's biggest business group, Mahindra &Mahindra, it is now turns of the Ruias to bid for buying the car maker.
Ruias are Kolkata-based and are one of India's most big business family; having interest in various sectors. The deadline for the bidding process for Ssangyong Motors is to end on Tuesday.
The group in a press statement said, "(The) Ruia group is indeed bidding for SsangYong. This has been decided in a meeting, presided by Pawan K Ruia, chairman."
The automotive arm of the conglomerate, M&M Group has recently said that the company will take a decision on whether to bid for the cash strapped Korean auto major, Ssangyong Motors or now at a later stage of time until it gets more close to the deadline of submitting the final bid.
The company said in a statement that it is still awaiting some additional information that may influence its decision of whether to bid or not for Ssangyong.