Broad based buying aids indices

Mon, 4 Oct 11:30 am

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   09:30 am   

   01:30 pm   

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After starting today’s session on a positive note, Indian indices have lost some ground. However, other key Asian markets are trading in the green with both the Hang Seng and the Nikkei trading higher 1.5% and 0.4% respectively. Currently, heavyweights in the Sensex are trading in the green with stocks from the auto and consumer durables space finding investors’ favour.

Currently, the BSE-Sensex is trading up by around 145 points, while the NSE-Nifty is up by about 67 points. Strong buying interest is being witnessed amongst mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading up by 0.63% and 0.59% respectively. The rupee is trading at 44.34 to the US dollar.

Banking stocks are trading firm led by Andhra Bank and Syndicate Bank. However, DCB and IndusInd Bank have lost some ground. IDBI Bank is planning to raise foreign loans of up to US$ 3 bn in the next one year through multiple sources like line of credit and bonds. The bank also maintains that interest margins are likely to go up in the current fiscal on the back of growth in cheaper CASA deposits. Further, in order to increase disbursement the bank has also announced a uniform 0.5% cut in interest on auto loans which are currently disbursed in the 9.25-10.5% range. Despite an upward revision in its base rate the bank does not have plans to raise the rates for home loans in the near future.

Recently, IDBI Bank also entered into an understanding with SIDBI for lending to the SME sector and is targeting to disburse Rs 70 bn in the first year itself. SIDBI will focus on the term loans aspect while IDBI will work on the working capital part and giving banking services to clients.

Auto stocks are trading firm led by M&M and Exide. M&M recorded its highest ever sales in a month at 35,177 units in September. This was an increase of 23.7% over the same period last year.  The company achieved its all-time high in domestic sales. This stood at 33,866 units during September 2010, against 27,431 units during September 2009. Domestic sales increased by 23.5%. Exports during the month jumped 86.5% to 1,311 units as against 703 units during September 2009.

The total sales of M&M utility vehicles (Scorpio, Xylo, Bolero and pick-ups), stood at 16,537 units against 15,296 units in September 2009, a growth of 8.1%. Sales of the Logan sedan went up by 96.1% to 1,000 units during the month, compared to 510 units a year ago. Sales of three-wheelers and Gio and Maxximo mini-trucks during September grew by 41% to 6,005 units. Light commercial vehicle sales from Mahindra Navistar during the month grew by 53.2%.