Sensex Trades Lower; Tata Steel & Tata Motors Top Losers

Stock markets in India are presently trading lower ahead of Reserve Bank of India's (RBI) bi-monthly monetary policy. Among the sectoral indices, PSU stocks and metal stocks are witnessing maximum selling pressure. While capital goods stocks and FMCG stocks are trading in green.

The BSE Sensex is trading lower by 223 points and the NSE Nifty is trading lower by 77 points. Meanwhile, the BSE Mid Cap index and the BSE Small Cap index both are trading down by 1%. The rupee is trading at 70.48 to the US$.

Automobile stocks opened the day on a mixed note with Mah. Scooters & TVS Motors leading the pack of gainers. Maruti Suzuki share price is trading down by 1.3% after it reported 12.6% fall in its production to 135,946 vehicles in November 2018. It had reported 155,568 vehicles in November 2017.

Of the total, the company manufactured 30,147 vehicles under mini segment in November 2018, as against 39,115 units manufactured in corresponding month the previous year.

The company manufactured 65,736 vehicles under Compact segment; 1,460 vehicles under Midsize; 23,038 units under Utility Vehicles segment and 13,768 units under Vans category.

The company has also produced 1,797 vehicles under Light Commercial Vehicles (CV) segment (including super carry) in November 2018, as against 1,565 units produced in corresponding month the previous year.

Speaking of blue-chip automobile stocks, one out of every three households in India is a buyer of their products. They own some of the cult brands in Indian automobile space.

Bluechip Auto Are Stocks Way Off Their Valuation Peaks

They have formidable R&D teams. They have been through several economic cycles over decades. Few have even visited near-bankruptcy in the past and come out successful.

Yet, some of the biggest passenger car, commercial vehicle, and two-wheeler companies in India have seen a huge dent in valuations in recent times.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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