Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the FMCG sector and energy sector witnessing maximum buying interest. Metal stocks are trading on a negative note.
The BSE Sensex is trading up 62 points (up 0.2%) and the NSE Nifty is trading flat. The BSE Mid Cap index is trading down 0.4%, while the BSE Small Cap index is trading down by 0.1%.
The rupee is trading at 66.68 to the US$.
In the news from commodity space, crude oil prices are witnessing buying interest today. Most of the gains are seen amid concerns that the United States may re-impose sanctions on major exporter Iran.
Note that crude oil prices have been witnessing a rising trend of late. However, this is not good news from India's perspective.
Stocks in the automobile sector are witnessing buying interest today on the back of strong April sales numbers posted by auto companies.
As per a leading financial daily, India's top car makers reported an 11.99% growth in sales in April, as sales recovered in semi-urban and rural markets. Stable urban demand was also boosted by the auspicious Akshaya Tritiya festival.
The top five passenger car makers - Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Mahindra and Mahindra Ltd, Tata Motors Ltd, and Toyota Kirloskar Motor Pvt. Ltd-sold 246,482 units during the month. This was up from 220,083 units a year ago.
Maruti Suzuki reported a 13.37% jump in sales from a year earlier to 147,548 units.
Tata Motors sold 17,235 units, a 34.37% jump from a year earlier. This was seen on the back of continued demand for the Tiago hatchback and Nexon compact SUV, besides other new launches.
Hyundai reported 46,735 units in sales, a 4.42% rise over the year-ago, while Mahindra and Mahindra Ltd posted a 13.08% jump in sales to 21,927 units.
Note that the auto industry did exceptionally well for the first nine months of FY18 by growing in double digits after some lean years.
Vehicle sales grew by 11.3% YoY during this period. The best performing of the lot were commercial vehicles (CVs), volumes of which grew by 15% YoY. Two-wheelers also did well growing by around 12% YoY.
Auto Volumes are a Good Indicator of Economic Growth
This development bodes well for the economy as well, as the volume of vehicles sold are one of the major indicators of economic growth.
We're keeping a close eye on auto stocks and will keep you posted on all the recent developments in this space.
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