Opening Bell 12 September | Automobile stocks in focus on improving prospects2 min read . Updated: 12 Sep 2014, 07:51 AM IST
The govt is looking at the proposal for extending excise duty concessions to the automobile sector beyond December
Mumbai: Asian markets opened on a mixed note. Tracking falling wheat and gold prices, stocks fell in the morning trade. US markets closed marginally higher. S&P 500 rose 0.09% to 1,997 on buying in shares of energy firms.
Commodities fell to a five-year low on speculation of abundant supplies and slowing economic growth outside of the US will curb demand for raw materials. Read the Bloomberg report.
In a respite for FMCG firms, food prices fell to the lowest in almost four years in August as costs of milk, cheese and cooking oils tumbled on signs of rising production, reports Bloomberg. An index of 55 food items dropped 3.6% to 196.6 points, the lowest since September 2010.
The government is considering introducing a bankruptcy code for corporate entities that are headed for failure, reports Mint. The move is aimed at facilitating the faster wind-up of insolvent companies and providing an easier exit route to investors.
The government is also looking at the proposal for extending excise duty concessions to the automobile sector beyond December, reports PTI. The move, if it happens, would provide further relief to auto makers.
Encouraged by signs of a revival in the automobile market, component makers are gradually returning close to the investment levels of the peak years, reports Mint. Auto sales in India have started recovering in the past four months, after declining for nine consecutive months before that.
Also keep an eye on shares of sugar companies. Some companies fear that falling sugar prices in global markets could impact the domestic sector. Read more.
Jharkhand has ordered the closure of 12 out of its 17 iron ore mines because their leases have expired, reports Reuters. The shut mines include those of steel majors Tata Steel Ltd and Steel Authority of India Ltd. (SAIL).
Maruti Suzuki India Ltd has scaled up its sales projection for current fiscal, reports Business Standard. According to the report, the company now expects its sales to grow in double digits this year.
Mahindra and Mahindra Ltd (M&M) is conducting early-stage studies on selling cars in the US made by its South Korean unit Ssangyong Motor Co. Ltd, reports Reuters. The company is looking at having multiple Ssangyong products available in the US, the report says.
In another report, Mahindra and Mahindra plans to launch two compact utility vehicle platforms and one Commercial vehicle platform next year.
Lastly, Sun Pharmaceutical Industries Ltd is looking to get shareholders’ approval to raise ₹ 12,000 crore through qualified institutional placement worth at its annual general meeting, reports Business Standard. According to The Economic Times, Sun Pharma’s American subsidiary has to recall a drug after the US FDA faulted it for poor quality.