Indian share markets continued to trade on a positive note during closing hours and ended their session near day's high.
At the closing bell, the BSE Sensex stood higher by 174 points (up 0.4%) and the NSE Nifty closed higher by 43 points (up 0.4%).
The BSE Mid Cap index ended up by 0.5%, while the BSE Small Cap index ended the day up by 0.3%.
On the sectoral front, gains were seen in the banking sector and metal sector. Capital goods sector and energy sector, on the other hand, witnessed selling.
Asian stock markets finished on a negative note as of the most recent closing prices. The Hang Seng stood down by 1.25% and the Nikkei was trading down by 1.05%, while the Shanghai Composite was trading down by 0.23%.
European markets were trading on a positive note. The FTSE 100 was up by 0.30%. The DAX was trading up by 1.07%, while the CAC 40 was trading up by 1.21%.
The rupee was trading at 71.60 to US$ at the time of writing.
In the news from the automobile sector, Tata Motors share price was in focus today as it was reported that double-digit growth in Land Rover lifted overall sales in the United States.
In November, Tata Motors' subsidiary and UK-based luxury carmaker Jaguar Land Rover (JLR) sold 12,472 units in the US. This marked an increase of 6.2% on a year-on-year (YoY) basis.
It sold 11,744 units in the US during November 2018.
On a month-on-month basis, sales increased by 19.4%.
Land Rover sales grew by 11.3% to 9,514 units, though Jaguar sales dropped 7.5% to 2,958 units compared to the same month last year.
It remains to be seen how these numbers pan out in the coming months. We will keep you updated on all the news from this space.
Speaking of auto sector, note that India's automobile industry is bracing itself for a unique challenge in the first quarter of 2020 when the transition of BS-IV to BS-VI emission norms has to be made at the stroke of midnight on 31 March 2020.
No BS-IV vehicle could be sold from 1 April 2020, which means automakers would have to reduce their inventory on BS-IV models to zero by then.
The exercise is likely to see companies show extra caution in dispatching cars to dealers in the next few months, which may cause a continuation of the decline in wholesale numbers.
However, despite the slowdown in the auto sector, the sales volume of electric vehicles (EVs) are growing at a robust pace.
Sale of Electric Vehicles in India Projected to Go Up 10x in the Next Two Decades
Electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.
The recently announced government incentives will give a further boost to EV sales.
The coming one year will be a real test for India's auto companies.
It will also tell us if this slowdown is temporary or if there has been a structural change in the sector.
In our view, companies in the sector adapting their business models to the rapidly changing environment will survive and thrive.
Moving on to the news from the IPO space, SAMHI Hotels has received Indian stock market regulator's go ahead to raise an estimated Rs 18-20 billion through its initial public offering (IPO).
Going by the draft papers, SAMHI Hotels' IPO comprises a fresh issue of Rs 11 billion and an offer for sale (OFS) of 1,91,45,624 equity shares.
Net proceeds of the fresh issue will be utilized towards repayment or prepayment of certain indebtedness by the company and its subsidiaries. Besides, the money will be utilized for general corporate purposes.
Kotak Mahindra Capital Company, CLSA India, DSP Merrill Lynch and Goldman Sachs will manage the offer.
As on June 30, 2019, the current portfolio of SAMHI consists of 27 operating hotels across 12 cities.
For operating its hotels, the company has a long-standing relationship with three leading hotel operators --Marriott, IHG and Hyatt, as per the company overview in draft papers.
How this IPO sails through remains to be seen. We will keep you updated on all the news from this space.
In other news, the IPO of Ujjivan Small Finance Bank (USFB), which had got fully subscribed on the first day itself, received around 66.06 times subscription so far on third and last day of the bidding process. The issue has so far received bids for 8,18,84,35,200 shares against the issue size of 12,39,58,333 shares.
It would be interesting to track USFB's debut on bourses.
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