Share markets in India are trading lower in today's volatile session, following the negative trend in Asian peers.
The BSE Sensex is trading down by 49 points, at 38,300 levels.
Meanwhile, the NSE Nifty is trading down by 5 points.
The BSE Mid Cap index is trading down by 0.6%. The BSE Small Cap index is trading down by 0.3%.
On the sectoral front, power stocks are witnessing most of the selling pressure. Meanwhile, FMCG stocks and IT stocks are trading in green.
Vodafone Idea is among the top gainers today as the company is scheduled to make a major announcement.
The rupee is trading at 73.32 against the US$.
Gold prices are currently trading up by 0.2% at Rs 50,792.
Speaking of stock markets, the right investing process helps you win in the long term. It might offer some unexpected and undesirable results but lets you farewell when you average the outcomes in the long term.
As per Richa Agarwal, any investment process should be judged not based on individual outcomes. Instead, it should have stood the test of the time.
Her smallcap service Hidden Treasure has had a fair share of failures. But sticking to a disciplined process meant to Hidden Treasure's internal rate of return (IRR) of 24.38% since inception. This compares favorably to the IRRs of 9.6% for the Sensex, and 8.8% for the smallcap index in the same period (February 2008 - June 2020) as can be seen in the chart below.
Moving on to stock-specific news...
VST Tillers is among the top buzzing stocks today.
Shares of the company hit a fresh 52-week high of Rs 1,924, up 6% on the BSE, surging as much as 18% in the past five days after the company reported a strong power tillers sales in the month of August.
The company sold 2,638 power tillers in August 2020 as against 1,437 in August 2019, registering 83.6% year-on-year (YoY) growth. It had sold 897 tractors during the last month, as compared to 813 in the corresponding month of the previous year.
The company's total sales (power tillers and tractors) were up 57% YoY at 3,535 units in August 2020, as against 813 units in the same month last year.
So far in the financial year 2020-21 (April 2020 to August 2020), the company has sold 10,864 power tillers as against 9,341 during the same period previous fiscal.
The company is one of the largest manufacturers of power tillers in India with a market share of around 46% in FY2019-20.
VST Tiller's share price is presently trading up by 3%.
Moving on to news from the automobile sector, automobile stocks are in focus today after Union Road Transport and Highways Minister Nitin Gadkari said that a vehicle-scrappage policy was in its final stages of approval and could even be rolled out by month-end.
Reports state that the vehicle scrappage policy aims to provide customers incentives to exchange old vehicles, which in turn will be used in recycling clusters - ultimately cutting costs of raw materials. It is also expected to boost demand for new vehicles in a COVID-hit economy.
Saying that the policy would allow India to become an automotive manufacturing hub over the next five years, Gadkari asked industry stakeholders to reduce dependence on imports. He added that the Centre was looking to increase duties on certain imported parts.
Facing one of its worst slumps even before the viral outbreak, the automotive industry has requested the government to put on hold the next generation emission norms that kick in from 2022.
Among individual stocks, Tata Motors is trading 1% higher after Tata Sons acquired 53,02,681 shares.
Tata Sons acquired shares in Tata Motors DVR 'A' Ordinary representing 1.04% of its total paid-up equity at an average price Rs 56.02 per share aggregating to Rs 297.1 million, the company said in an exchange filing.
Other auto stocks such as Maruti Suzuki, Eicher Motors, and TVS Motors are trading in green.
Speaking of the automobile sector, note that the sector has rebounded sharply from its March lows.
As per Apurva Sheth, the auto index entered the greed phase in September 2019 and will stay there until December 2021. This means there is still a lot of fuel left for auto stocks.
How automobile stocks perform in the coming months remains to be seen. Stay tuned for more updates from this space.
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