The News International Team
9:45 am Buzzing: Shares of Tata Motors jumped 2 percent intraday, riding on its Jaguar Land Rover July sales number. The luxury car business sold 39467 units (up 12.2 percent) as compared to 35162 units in the same period last fiscal. The stock has been on buyers’ radar after its April-June quarter spectacular performance.
Macquarie maintains an outperform rating on the stock with a target of Rs 540 per share. The brokerage says that JLR is poised for strong volume growth going ahead as new models will be launched in FY15-16 and production in China will also start.
However, Tata Motors’ global wholesale volumes, including those of Jaguar Land Rover, declined 8.5 percent in July 2014 to 80,151 vehicles compared to the year-ago period on the back of poor sales in the domestic market.
Commercial vehicle sales took a huge hit, declining 23.8 percent to 31,150 units in July 2014 from the year-ago period. Cumulative CV wholesales for the fiscal stood at 1,18,816 units, a decline of 26.3 percent.
Don’t miss: CBI to probe Tata Realty-Unitech land deal worth Rs 1700 cr
After a long weekend, the market has opened on a flat note. The Sensex is up 20.46 points or at 26123.69 and the Nifty is down 6.45 points at 7785.25. About 391 shares have advanced, 238 shares declined, and 39 shares are unchanged.
Tata Power, ONGC, HUL, Tata Motors and Dr Reddy’s Labs are top gainers in the Sensex. Among the losers are Sun Pharma, Hindalco, Cipla, Coal India and Bharti Airtel.
The money market is shut today, due to festivals.
All eyes will be on the announcements that Prime Minister Narendra Modi made in his maiden Independence Day speech as he revealed his vision for India. The Planning Commission will now make way for a new national think tank. Modi has also put greater stress on financial inclusion, emphasis on manufacturing and better broadband connectivity high on his priority list.
Global cuesare negative as the Wall Street turned volatile on Friday as geopolitical tensions rose. The S&P 500 managed to pare losses and close flat and Asia is mixed in morning trade.
In other asset classes the US dollar, euro and yen were little changed as heightened tensions in Ukraine drove global bond yields to fresh lows. Brent crude prices, meanwhile, eased following gains in the previous session, dragged lower by signs of increased supply from Libya.
And precious metal gold extended losses into a second session, slipping below USD 1,300 an ounce on technical selling and as equities recovered after an initial sell-off over geopolitical concerns.