Key benchmark indices cut losses in afternoon trade led by buying demand in interest rate sensitive auto and realty stocks. At 13:28 IST, the barometer index, the S&P BSE Sensex, was down 65.25 points or 0.25% at 26,561.21. The Nifty 50 index was currently down 15.25 points or 0.19% at 8,170.55.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,591 shares rose and 843 shares fell. A total of 96 shares were unchanged. The BSE Mid-Cap index was currently up 0.41%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.
Interest rate sensitive auto stocks were mostly higher after many banks announced reduction in lending rates. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors (up 0.71%) and Ashok Leyland (up 0.5%) gained. Hero MotoCorp (down 0.98%) and TVS Motor Company (down 0.11%) fell.
Mahindra & Mahindra (M&M) rose 1.24%. M&M's total auto sales declined 4% to 36,363 units in December 2016 over December 2015. Total domestic sales fell 1.5% to 34,310 units in December 2016 over December 2015. Total exports dropped 33% to 2,053 units in December 2016 over December 2015. The announcement was made during market hours today, 2 January 2017.
Commenting on the performance for December 2016, Pravin Shah, President & Chief Executive (Automotive), M&M said, the auto industry continues to go through challenging times, grappling with the short term effects of demonetisation as well as reduced and postponed purchase decisions. However, the company believes there will be a gradual pick-up in demand starting next few months.
The company's total tractor sales rose 9% to 14,047 units in December 2016 over December 2015. Domestic sales rose 8% to 12,619 units in December 2016 over December 2015. Exports surged 21% to 1,428 units in December 2016 over December 2015. The announcement was made during market hours today, 2 January 2017.
Maruti Suzuki India rose 0.71%. The company announced on Sunday, 1 January 2017 that total sales fell 1% to 1.17 lakh units in December 2016 over December 2015. Domestic sales fell 4.4% to 1.06 lakh units in December 2016 over December 2015. Exports rose 47.1% to 11,494 units in December 2016 over December 2015.
Eicher Motors gained 3.15%. The company announced on Sunday, 1 January 2017 that sales volume of VE Commercial Vehicles, an unlisted subsidiary of Eicher Motors fell 20.04% to 4,048 units in December 2016 over December 2015. Separately, Eicher Motors said that total motorcycles sales rose 42% to 57,398 units in December 2016 over December 2015.
Bajaj Auto dropped 2.12% after the company reported weak sales in December 2016. The company announced during market hours today, 2 January 2017, its total sales declined 22% to 2.25 lakh units in December 2016 over December 2015. Domestic sales dropped 17% to 1.19 lakh units in December 2016 over December 2015. Exports fell 27% to 1.05 lakh units in December 2016 over December 2015.
Engineering and construction major L&T rose 0.79%. The company announced during trading hours today, 2 January 2017, that its wholly owned subsidiary L&T Hydrocarbon Engineering led consortium has secured two more orders from Saudi Aramco.
In a separate announcement, L&T announced during trading hours today, 2 January 2017, that it has bagged another smart city project as part of the Government's Smart City Mission by being identified as the implementation partner to convert Pune into a Smart City. The scope of work includes enabling wi-fi at around 200 strategic Locations across Pune, establishing emergency call boxes and public address systems, environmental sensors, variable messaging displays, network connectivity and video analytics integration. The project includes a revenue monetization model, country's first in smart cities domain.
Interest rate sensitive realty stocks rose after many banks announced reduction in lending rates. Purchases of both residential and commercial property are largely driven by finance.
DLF (up 4.45%), Indiabulls Real Estate (up 4.49%), Housing Development and Infrastructure (up 3.09%), D B Realty (up 4.95%), Unitech (up 5.96%), Sobha (up 1.44%), Godrej Properties (up 2.28%), Oberoi Realty (up 5%) and Parsvnath Developers (up 4.81%) gained. Prestige Estates Projects (down 0.7%) fell.
Transformers and Rectifiers (India) gained 4.56% after the company announced that it has been awarded the order for power transformers amounting to Rs 92 crore from Gujarat Energy Transmission Corporation. With this order, the company's order book as on date stands around Rs 960 crore. The announcement was made after market hours on Friday, 30 December 2016.
Overseas, Asian markets were shut for public holiday. South Korea's Seoul Composite was off 0.01%. US stocks fell on Friday, 30 December 2016, as investors took profits on some of 2016's high-flying sectors.
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