MARKET COMMENT VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities The RBI refused to open a special window for oil marketing companies, which impacted market sentiment. Rupee touched a new low of 73.40 to a dollar. The Sensex lost 550 points or 1.3% and hit the lowest level in the current downturn. Automobile stocks were battered, as fears of margin compression came to fore. Metal stocks, especially aluminum producers, were in limelight. World’s largest alumina refinery Norsk Hydro's closure buoyed aluminum players. Small-cap index bucked the trend and managed to close in positive on back of value buying. MARKET COMMENT HDFC Securities on auto sector The relentless surge in fuel prices over the past few months and devastating flood in Kerala dampened PVs(-3% YoY) demand. Inventory has piled up to 40-45 days and all eye now focusing on festive season to drive up PV demand. However, revival in rural demand and festive season inventory build-up aided decent growth (+6%) in 2Ws. Despite higher fuel prices, CV demand remains healthy (+23%, M&HCV-26% and LCV22%) led by healthy freight availability and pick up in Ecommerce, white goods and infra segment. We believe good monsoon, improving rural demand and upcoming festive season will augur well for automotive Industry and recent correction in stocks price provides a good entry opportunity. Our top picks in OEMs space are MSIL (extensive distribution network and strong rural franchise), Ashok Leyland (leadership in high tonnage trucks) and Bajaj Auto (diversified product and geographical mix) Sectoral Losers at NSE Gainers and Losers in BSE Sensex Market at close The S&P BSE Sensex ended at 35,976, down 551 points while the broader Nifty50 index settled at 10,858, down 150 points. India's Q4 gold imports to jump as investors seek safer bets than stocks India's gold imports may rise in the fourth quarter as investors seek alternatives to faltering equity markets and a plunging rupee at the same time traditional buying will rise during the festival season, said multiple sources involved in the market. READ MORE
The Indian currency dropped to a record low in intraday trade on Wednesday as a sharp rise in global crude oil prices over the last two sessions weighed on sentiment for the local unit.
The S&P BSE Sensex ended at 35,976, down 551 points while the broader Nifty50 index settled at 10,858, down 150 points.
Among sectoral indices, the Nifty IT index settled 2 per cent lower led by a fall in the share prices of Tata Consultancy Services (TCS) and Infosys.
Auto stocks down
Auto shares were in focus on Wednesday, with the Nifty Auto index slipping nearly 3 per cent led by a fall in shares of Eicher Motors, Maruti Suzuki and Mahindra & Mahindra. Eicher Motors hit a 52-week low of Rs 23,050, down 6.9 per cent in intraday trade. The stock settled 6.8 per cent lower at Rs 23,070.
RBI monetary policy