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M&M gains after reporting strong tractor sales growth for October

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Last Updated : Nov 01 2013 | 11:56 PM IST

A bout of volatility was witnessed as key benchmark indices regained positive zone after reversing intraday gains in afternoon trade. The market breadth, indicating the overall health of the market, was positive. The barometer index, the S&P BSE Sensex, was up 9.62 points or 0.05%, off close to 120 points from the day's high and up about 33 points from the day's low.

Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by. Shares of cellular services major Bharti Airtel extended recent gains.

A bout of initial volatility was witnessed as key benchmark indices pared gains after moving into the positive terrain after opening lower. The Sensex hit record high at the onset of the trading session and on the first day of Diwali today, 1 November 2013. Intraday volatility continued as key benchmark indices pared gains after extending initial gains to hit fresh intraday high. The Sensex retained positive zone in mid-morning trade. Key benchmark indices were range bound in positive zone in afternoon trade. A bout of volatility was witnessed as key benchmark indices regained positive zone after reversing intraday gains in afternoon trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1875.87 crore on Thursday, 31 October 2013, as per provisional data from the stock exchanges.

At 13:15 IST, the S&P BSE Sensex was up 9.62 points or 0.05% to 21,174.14. The index jumped 129.36 points at the day's high of 21,293.88 in morning trade, which is a record high. The index fell 23.20 points at the day's low of 21,141.32 in afternoon trade.

The CNX Nifty was up 3.75 points or 0.06% to 6,302.90. The index hit a high of 6,332.60 in intraday trade, its highest level since 8 November 2010. The index hit a low of 6,286.95 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,249 shares rose and 1,000 shares fell. A total of 147 shares were unchanged.

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Among the 30-share Sensex pack, 21 stocks rose and rest of them fell. State Bank of India (up 3.54%), Hero MotoCorp (up 2.64%), Jindal Steel & Power (up 2.08%), Coal India (up 1.97%), Bhel (up 1.95%), Tata Motors (up 1.5%) and Sesa Sterlite (up 1.04%) edged higher from the Sensex pack.

ONGC (down 1.69%), NTPC (down 1.58%), ITC (down 1.39%), Hindalco Industries (down 0.96%), GAIL (India) (down 0.92%), Infosys (down 0.68%), Reliance Industries (down 0.66%) and TCS (down 0.49%), edged lower from the Sensex pack.

Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by. The stock was up 2.39%. M&M's total tractor sales jumped 29% to 38,263 units in October 2013 over October 2012. Tractor sales in the domestic market jumped 30% to 37,532 units while exports rose 5% to 731 units in October 2013 over October 2012.

Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said: "The tractor industry continues to do well overall and has seen a healthy growth this fiscal. At Mahindra, we are happy to maintain a robust growth momentum with a 30% domestic growth during October 2013. This is on the back of a good monsoon, improved cash flows as well as greater mechanization".

M&M separately also reported monthly sales data of its automobiles division. The company's total auto sales fell 5% to 50,558 units in October 2013 over October 2012. Total domestic sales fell 7% to 47,787 units in October 2013 over October 2012.

Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "During such tough and challenging times, we are heartened with our performance in October 2013 which has grown by 17% over the last month. In spite of new launches, the auto sector has witnessed a de-growth of nearly 5% during the first half of FY 2013-14 and the recent repo rate hike may prove to be a dampener for potential customers. The auto industry continues to look forward to an immediate support in terms of a stimulus package to perk it up as well as bring back the growth momentum for the economy in general & automotive sector in particular".

Shares of cellular services major Bharti Airtel extended recent gains. The stock was up 0.92% at Rs 368. The stock hit a 52-week high of Rs 373.50 in intraday trade.

Shares of public sector oil marketing companies (PSU OMCs) rose as diesel price was raised by 50 paise per litre. The price changes announced by oil companies, effective from today, 1 November 2013, are excluding local sales tax or VAT. PSU OMCs simultaneously cut petrol price by Rs 1.15 a litre. HPCL (up 2.13%), Indian Oil Corporation (up 1.83%) and BPCL (up 0.07%), edged higher.

Century Enka spurted 7.74% after net profit galloped 386.9% to Rs 21.57 crore on 0.96% growth in total income from operations to Rs 391.26 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Thursday, 31 October 2013.

Kalpataru Power Transmission rose 2.9% after net profit rose 17% to Rs 31 crore on 35% growth in revenue to Rs 962.20 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Thursday, 31 October 2013.

In the foreign exchange market, the rupee edged lower against the dollar, tracking global dollar gains. The partially convertible rupee was hovering at 61.91, compared with its close of 61.50/51 on Thursday, 31 October 2013.

The stock exchanges will hold a special live trading session on Sunday, 3 November, 2013, on account of Muhurat trading on Diwali. The trading will start at 18:15 IST and will end at 19:30 IST on that day. The stock market remains closed on Monday, 4 November 2013, on account of Diwali-Balipratipada.

Indian factories cut production in October with overall manufacturing activity contracting for the third straight month as order books shrank at a quicker pace, a survey showed on Friday, 1 November 2013. The HSBC Manufacturing PMI compiled by Markit was unchanged at 49.6 in October, remaining below the watershed 50 mark that separates growth from contraction. The new orders sub-index fell to 48.9 last month from 49.6 in September, its fifth month below 50. The PMI survey showed input costs grew last month at their quickest pace since June 2012. Output costs also rose at the fastest rate since February. "Input price inflation accelerated further despite the weak growth backdrop, as the effects of the depreciated exchange rate continue to pass through. This suggests that the RBI has to continue its staring contest with inflation," said Leif Eskesen, chief economist for India at survey sponsor HSBC.

The Eight Core Industries having a combined weight of 37.90% in the Index of Industrial Production (IIP) rose 8% in September 2013, posting highest growth in last 12-months, data released by the government after trading hours on Thursday, 31 October 2013, showed.

Fiscal deficit was Rs 4.12 lakh crore during April-September 2013, or 76% of the full-year target, government data showed on Thursday, 31 October 2013. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.

Most Asian stocks declined on Friday, 1 November 2013, as speculation the Federal Reserve will reduce stimulus in coming months overshadowed improving China manufacturing data. Key benchmark indices in Japan, Taiwan, Indonesia, and Singapore shed 0.30% to 1.34%. Key benchmark indices in China, Hong Kong and South Korea rose 0.15% to 0.46%.

A Chinese manufacturing gauge rose more than estimated to an 18-month high in October as output strengthened, adding to evidence the nation's economic recovery is sustaining momentum. The Purchasing Managers' Index was at 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.

Trading in US index futures indicated that the Dow could advance 43 points at the opening bell on Friday, 1 November 2013. US stocks fell on Thursday, 31 October 2013, as investors assessed corporate earnings and speculated on when the Federal Reserve will cut stimulus.

US data yesterday showed the biggest jump in a gauge of business activity in more than three decades and a drop in jobless claims. Fewer Americans filed applications for unemployment benefits last week as a backlog in California's reporting cleared. Jobless claims decreased by 10,000 to 340,000 in the week ended Oct. 26 from 350,000 the prior period, the Labor Department reported Thursday in Washington.

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First Published: Nov 01 2013 | 1:20 PM IST

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