Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Auto stocks lead the rally
Tue, 10 Jul 11:30 am

Indian equity markets have been trading in the green during the last two hours of trade on back of buying across sectors. Power and FMCG stocks were the only losers amongst all sectoral indices.

The BSE-Sensex is up by 90 points and NSE-Nifty is up by 25 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.6% and 0.7% respectively. The rupee is trading at 55.81 to the US dollar.

Automobile stocks are trading strong led by Tata Motors and Escorts. According to a leading financial daily, Tata Motors is looking to buy auto parts from China. The automobile company will buy sub-assemblies including automatic transmissions from the neighbouring country at cheaper prices. Tata Motors is facing increasing competition domestically from competitors such as Toyota Motors and Force Motors. For this, Tata wants to offer a wider choice of vehicles to entice customers, including vehicles with automatic transmissions. The Tata company fears that no domestic supplier would be willing to build such vehicles unless the volumes were high enough. Thus, it is looking at China to procure auto parts for these.

Steel stocks are trading in the green. JSW Steel and JSW Ispat are the biggest gainers, while Bhushan Steel and Maharashtra Seamless are the biggest losers. According to a leading financial daily, Steel Authority of India Limited (SAIL) is planning to expand its production capacity to 45 million tonne per annum (mtpa) by 2020. The company is currently in the middle of expanding its crude steel production capacity to 21.40 mtpa from 12.84 mtpa now with an investment of Rs 720 bn. On top of this, it plans to invest Rs 1,310 bn to raise capacity from 21.4 mtpa to 45 mtpa. SAIL will start work on increasing capacity to 45 mtpa as soon as the current phase of expansions is over next year. They will increase capacity through both greenfield and brownfield expansions. The greenfield plant may come up at Sindri in Jharkhand at the site of erstwhile Fretiliser Corporation of India.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Auto stocks lead the rally". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.