Indian equity markets remain flat

Fri, 25 Jan 11:30 am

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Indian equity markets have remained flat during the previous two hours of trade. The most noticeable upward movements continue to be witnessed in the Auto and FMCG sectors while Metals and Oil and Gas trade in the red.

BSE-Sensex is up by 55 points and NSE-Nifty is up by 8 points. BSE Mid Cap index is trading higher by 0.43% and BSE Small Cap index is trading higher by 0.19% respectively. The rupee is trading at 53.69 to the US dollar.

Real Estate/Construction stocks are trading on a mixed note with HDIL and IVRCL leading the gains while PVP Ventures and Ansal Housing are facing maximum selling pressures. While the shares of IVRCL seems to have recovered, it had plunged in the early hours of trade today following the news that a National Highways Authority of India (NHAI) consultant overseeing the Company's road project has died and his death has been linked with IVRCL. IVRCL has issued a press release saying that '' Linking the unfortunate incident to us by some sections of the media (though it was only a passing reference) appears to have resulted in our shares being affected adversely and our image being damaged''. The consultant, Paulose Thomas was an employee of Intercontinental Consultants and Technocrats (ICT), which has been employed by NHAI to oversee the quality of work on the four/six laning of NH 47 from Chengapali near Coimbatore to Walayar on the Tamil Nadu-Kerala border. The incident appears to have taken place 45 days ago. The project in question is being executed by IVRCL Chengapalli Tollway Limited, a subsidiary of IVRCL.

Auto stocks are also trading on a mixed note with Tata Motors and Maruti Suzuki leading the gains while TVS Motors and Force Motors lead the losses. The management of Tata Motors has said that the Company's subsidiary, Jaguar Land Rover (JLR) can post lower than expected profit for the quarter ended December 2012. This is because the subsidiary's product mix will comprise of cheaper versions of the SUV, Evoque, which accounts for 30% of JLR sales. Besides, foreign exchange losses are also expected. Higher product incentives are also expected to creep into costs. In a notice to the stock exchanges, Tata Motors has announced that JLR will raise US$ 400 m by issuing bonds to support its operational costs and future growth plans. JLR also has plans to launch eight new vehicles in 2013 including a convertible sports car and a new hybrid Range Rover. The Company has further said that capital spending can rise steeply to US$2.75 m in financial year 2014 (FY14), which may give rise to negative cash flows in FY14.