Key benchmark indices hovered in positive terrain in morning trade as fall in crude oil prices boosted sentiment. India imports two-third of its crude oil requirement. Lower crude oil prices ease concerns about India's unfavorable fiscal and current account deficit situation. The barometer index, the S&P BSE Sensex, was currently up 106.45 points or 0.42% at 25,587.29. The BSE Small-Cap index rose almost 1%. The market breadth indicating the overall health of the market was strong. Auto stocks gained ahead of the reserve Bank of India's (RBI) monetary policy review tomorrow, 5 August 2014. Tata Motors gained after announcing its July sales. Mahindra & Mahindra (M&M) gained after announcing its July sales figures. Maruti Suzuki India extended Friday's gains triggered by strong sales in July. Bajaj Auto rose after announcing good July sales. TVS Motor Company jumped after the company recorded strong sales in July.
At 10:20 IST, the S&P BSE Sensex was up 106.45 points or 0.42% to 25,587.29. The index gained 164.59 points at the day's high of 25,645.43 in early trade. The index rose 50.54 points at the day's low of 25,531.38 in morning trade.
The CNX Nifty was up 37.15 points or 0.49% to 7,639.75. The index hit a high of 7,654.15 in intraday trade. The index hit a low of 7,622.05 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,408 shares rose and 580 shares fell. A total of 79 shares were unchanged.
The BSE Mid-Cap index was up 53.84 points or 0.59% at 9,168.17. The BSE Small-Cap index was up 98.29 points or 0.99% at 9.989.26. Both these indices outperformed the Sensex.
Auto stocks gained ahead of the reserve Bank of India's (RBI) monetary policy review tomorrow, 5 August 2014. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Tata Motors gained 1.63% after announcing its July sales. The company after market hours on Friday, 1 August 2014 said that its total sales declined 23% to 39,623 units in July 2014 over July 2013. Domestic sales of Tata commercial and passenger vehicles dropped 25% to 35,256 units in July 2014 over July 2013.
Tata Motors' sales of commercial vehicles declined 28% to 26,089 units in July 2014 over July 2013. LCV sales fell 39% to 16,364 units in July 2014 over July 2013. M&HCV sales remained flat at 9,725 units in July 2014.
Passenger vehicle sales fell 15% to 9,167 units in July 2014 over July 2013.
Exports rose 2% to 4,367 units in July 2014 over July 2013.
Mahindra & Mahindra (M&M) gained 0.11% after announcing its July sales figures. The company after market hours on Friday, 1 August 2014, reported 6% decline in its total tractor sales to 17,407 units in July 2014 over July 2013. Domestic sales declined 8% to 16,379 units in July 2014 over July 2013. Exports surged 47% to 1,028 units in July 2014 over July 2013. Exports include CKD units.
Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, M&M said, We have registered a sale of 16,379 units during July 2014. A delay in the arrival of monsoon has led to late sowing and has impacted farmer sentiment leading to lower sales of tractors in July. We do hope that the rains picking up in the month of July across the country will give a boost to the farmers' morale and the agriculture industry alike.
Separately, M&M on Friday, 1 August 2014, reported 4% drop in its total auto sales at 35,567 units in July 2014 over July 2013. Sales of Passenger Vehicle segment (which includes UVs and Verito) declined 5% to 14,708 units in July 2014 over July 2013. Domestic sales dropped 4% to 33,047 units in July 2014 over July 2013. Sales of four-wheeler commercial segment declined 9% to 12,472 units in July 2014 over July 2013. Three-wheeler sales rose 15% to 5,142 units in July 2014 over July 2013. Exports dropped 3% to 2,520 units in July 2014 over July 2013.
Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), M&M said, The overall sales during the last month was subdued and the market remained challenging with the monsoon now setting in across the country as well as the ensuing festival season. We expect positive sentiments in the coming months resulting in enhanced demand for our products. We are happy that our first global SUV, the XUV500, has crossed the milestone of 1 lakh sales, this month, which is less than three years since its launch and we thank our customers for it.
Maruti Suzuki India gained 0.15%, with the stock extending Friday's gains triggered by strong sales in July. Maruti Suzuki India said during market hours during market hours on Friday, 1 August 2014, that the company's total sales jumped 21.7% to 1.01 lakh units in July 2014 over July 2013. Domestic sales rose 19.9% to 90,093 units in July 2014 over July 2013. Exports rose 38.4% to 11,287 units in July 2014 over July 2013.
Bajaj Auto rose 0.8% after announcing good July sales. The company said during market hours that total sales rose 13% to 3.19 lakh units in July 2014 over July 2013. Commercial vehicles sales rose 49% to 51,451 units in July 2014 over July 2013. Motorcycles sales rose 9% to 2.67 lakh units in July 2014 over July 2013. Exports rose 54% to 1.69 lakh units in July 2014 over July 2013.
Hero MotoCorp gained 0.05%. The company said during market hours on Friday, 1 August 2014, its sales rose 9% to 5.29 lakh units in July 2014 over July 2013. The company also on 1 August 2014, extended the tenure of its Chief Financial Officer (CFO) Mr. Ravi Sud by another two years till 31 July 2016.
TVS Motor Company jumped 4.23% after the company recorded strong sales in July. The company recorded 32% growth in sales to 2.03 lakh units in July 2014 over July 2013.
Motherson Sumi Systems fell 0.28% after the company said it has successfully closed the deal for acquiring wiring harness business of Stoneridge Inc. in a record time on receipt of necessary regulatory approvals. The announcement was made on Saturday, 2 August 2014.
As announced previously on 27 May 2014, Motherson Sumi Systems (MSSL) had signed an agreement to acquire the wiring harness business of Stoneridge Inc. through asset purchase at consideration of $65.7 million on no cash no debt basis. The total cash outlay of $71.38 million includes increase in working capital and cash/bank balances subject to post-closing adjustments, MSSL said in a statement.
The addition of new manufacturing facilities would enable MSSL to service the growing requirement of the customers in the region, MSSL said. With this acquisition, MSSL now has over 45 plants related to wiring harness business, it added.
Talking on the development, Mr. V.C. Sehgal, Group Chairman said, "We welcome the entire team of wiring harness business joining us in North America today. The business has strong synergies with MSSL's existing business, products, customer segments and operations. Our endeavour would be to add a lot of value in the customer experience, products offered & services. This acquisition reaffirms our commitment to our customers and reiterates our vision of being a globally preferred solutions provider".
Godfrey Phillips India jumped 8.86%, after net profit jumped 243.42% to Rs 80.19 crore on 13.63% rise in total income from operations to Rs 698.84 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Saturday, 2 August 2014. Godfrey Philips India said that Q1 June 2013 net profit was hit by an exceptional item of Rs 35.38 crore incurred as compensation paid to unionized staff and workmen attached to the company's plant at Andheri, Mumbai, pursuant to voluntary retirement schemes announced by the company.
Godfrey Phillips India said that the government's decision to increase excise duty on cigarettes in the range of 11% to 72% in the Union Budget 2014-15 presented on 10 July 2014 may have bearing on the financial performance of the company in the remaining part of the year.
Monsoon was 9% below long period average (LPA) in the week from 24 July to 30 July 2014. The cumulative rainfall during this year's monsoon has so far upto 30 July 2014 was 23% below the LPA.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.955, compared with its close of 61.1875 on Friday, 1 August 2014.
The Reserve Bank of India (RBI) announces monetary policy review tomorrow, 5 August 2014.
Asian stocks were mostly higher in choppy trade today, 4 August 2014, as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key benchmark indices in Hong Kong, China, Indonesia, and Taiwan were up 0.07% to 1.14%. Key benchmark indices in South Korea, Japan and Singapore fell by 0.05% to 0.54%.
The People's Bank of China warned that the country's credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.
A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The non-manufacturing Purchasing Managers' Index fell to 54.2 from 55 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A reading above 50 indicates expansion.
Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout. Banco Espirito Santo has been forced to take government money after regulators uncovered potential losses on loans to other companies tied to Portugal's Espirito Santo family and ordered the lender to raise capital. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject the cash, and said government funds would only be used as a last resort.
Trading in US index futures indicated that the Dow could gain 50 points at the opening bell on Monday, 4 August 2014. US stocks declined on Friday, 1 August 2014, as concern over Argentina and Portugal overshadowed data that signaled the Federal Reserve may have leeway to keep rates low.
US added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The 209,000 advance fell short of forecasts. The jobless rate climbed to 6.2% from 6.1% in June as more people entered the labor force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing US factories will help power the economy after a second-quarter rebound. The Institute for Supply Management's index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group's report showed. Readings above 50 indicate growth.
Argentina's failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps & Derivatives Association. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.
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