The News International Team
12:30pm Force Motors shares in demand
The Indian arm of German luxury auto maker BMW Group on Wednesday said it will partner with seven domestic suppliers to source components for local production of cars at its Chennai plant in south India.
With the addition of the partners, which include Force Motors Ltd, Tenneco Automotive India and Lear India, the level of localisation at the company’s Chennai plant will increase to about 50 percent, BMW Group India said in a statement.
Shares of Pune-based Force Motors, from which BMW will source engines and gearboxes, rose as much as 18 percent on news of the partnership.
BMW Group India said it will also source axles, door panels, wiring harness, exhaust systems, air conditioning and cooling modules and seats from the domestic suppliers.
The local partnerships will help the company optimise costs and set higher quality standards, it said. The company raised prices across its range of vehicles by up to 5 percent from January 1, reports Reuters.
The stock rallied 13 percent.
12:00pm Market Check
The market traded in a choppy range today. The Nifty hovered around the 8,750 level as metal, realty estate and HDFC twins led gains while auto and banking stocks lost ground.
The 30-share BSE Sensex declined 1.71 points to 28998.43 and the 50-share NSE Nifty slipped 2.90 points to 8753.65. About 1254 shares have advanced, 1234 shares declined, and 225 shares are unchanged on the BSE.
Asian markets traded mostly higher as they digested a slew of corporate earnings in Japan and Australia. Oil prices, however, fell on the back of renewed concerns over global demand and as high stock levels halted a rally that had lifted prices by about 19 percent over the past four sessions.
ONGC was among the top gainers on the Nifty today. CNBC-TV18 learnt that the government is moving to iron out the subsidy sharing formula and fast track the ONGC divestment. Sources say, the oil ministry asked the government not to impose any subsidy burden on upstream companies if crude prices stayed at or less than USD 60 per barrel.
From frontline earnings, JSPL gained 2 percent after posting its Q3 numbers yesterday. Citi says it was tough quarter but they maintained a buy as valuations look cheap and they are comfortable with cash flows. Hero Motocorp lost 1 percent, reacting to weak Q3 numbers. UBS maintains neutral rating but reduced its target price to Rs 3200 per share and Goldman Sachs maintains a sell.
Bharti Airtel traded with marginal weakness ahead of Q3 numbers today. A CNBC-TV18 poll sees a 2.6 percent revenue growth while profit is expected to decline by 8.5 percent. Analysts say dollar revenue growth in Africa could be very disappointing due to cross currency headwinds.
Axis Bank plunged 4 percent followed by TCS, Tata Motors, State Bank of India, HUL, BHEL, Bharti Airtel, Hero Motocorp and NTPC with 1-1.8 percent loss.
However, Infosys, HDFC Bank, HDFC, Sun Pharma, Sesa Sterlite, Tata Steel, M&M, Coal India, Hindalco and Tata Power gained 1-3 percent.