Stocks of Tata Motors, Coal India, Maruti Suzuki, Dr Reddy’s will be in focus today

By: | Updated: September 4, 2017 10:56 AM

Indian stock market opened higher on Monday with BSE Sensex opening up 40 points at 31,932.2 points. This week Indian equities weigh in on August services sector data and largely look up to global trends for direction.

Investors are expected to digest the Cabinet reshuffle announced yesterday. (Image: NSE)

Indian stock market opened higher on Monday with BSE Sensex opening up 40 points at 31,932.2 points. This week Indian equities weigh in on August services sector data and largely look up to global trends for direction. Investors are also expected to digest the Cabinet reshuffle announced yesterday.

Shares of the Tata group’s automaker Tata Motors advanced over 4% on Friday after the company reported a rise of 14% in the total sales for the month of August 2017 to 48,998 units. The total sales of Tata Motors passenger and commercial vehicles total sales (including exports) rose 14% to 48,988 units in August 2017 as compared to 43,105 vehicles sold in August 2016. The stock of Tata Motors gained as much as 4.18% to the day’s high of Rs 392.35 before closing 3.74% up at Rs 390.7 on Friday. The company added Rs 4,071.7 crore to Rs 1,12,808.70 crore in its market valuation.

Shares of the Hyderabad-based drug maker Dr Reddy’s Laboratories surged over 9% on Friday after the Nasdaq-listed Vivus Inc entered into a settlement agreement with the pharmaceutical firm to resolve a long-pending patent litigation related to weight management capsules Qsymia.pharmaceutical company entered. The stock of Dr Reddy’s rose as much as 9.29% to the day’s high of Rs 2,208 on BSE on Friday. The company’s market valuation rose by Rs 3,255.86 crore to Rs 36,753.86 crore.

Shares of the Royal Enfield maker Eicher Motors advanced over 1% on Friday after the Gurgaon-based automaker reported a 22% rise in the sales for the month of August 2017. The total motorcycles sales for the month of August 2017 grew 22% to 67,977 units as compared to 55,721 units in the same month of previous fiscal. The stock of Eicher Motors rose as much as 1.82% to the day’s high of Rs 31,976.95 on BSE on Friday.

Shares of the two-wheeler maker Bajaj Auto gained over 3% on Friday after the company reported a 3% rise in the sales for the month of August. The automaker posted an increase of 2.98% in the total sales to 3,35,031 units for the month of August 2017 versus 3,25,347 units in the August 2016. The stock of Bajaj Auto rose as much as 3.9% to the day’s high of Rs 2,918.1 on BSE on Friday.

Shares of the Maruti Suzuki advanced over 1.5% on Friday after the automaker reported a rise of 23.8% in the August sales figures. India’s largest car maker Maruti Suzuki India today reported a 23.8% increase in the total sales at 1,63,701 units in August 2017 versus 1,32,211 units in the same month a year-ago. The heavyweight stock of automaker was among the top five contributors to the gains in the benchmark Sensex on Friday.

Metals and mining conglomerate Vedanta Resources has plans to invest around Rs 50,000 crore on business expansion in India in coming years, PTI reported citing Chairman Anil Agarwal. He also expressed hope that the retrospective taxation
issue between Cairn Plc and the government would soon be sorted out. “I have promised the government that the group will
invest Rs 40,000-50,000 crore. My shareholders and my banks abroad would be very pleased with my plan,” Agarwal said.

Larsen & Toubro, the country’s largest engineering firm, has received green nod for expansion of its Powai residential and IT towers project in Mumbai that will entail an investment of Rs 1,102 crore. Initially, the company had received the environment clearance (EC) for construction of three wings of IT towers in a total area of 1,49,618.70 square meter. The pre-construction work has started.

State-owned NTPC recorded 12.55 per cent growth in power generation in August this year as compared to the same month in 2016. “The total (power) generation for the month (August 2017) was 22.347 billion units (BU) as against 19.855 billion
units,” NTPC said in a statement today.

The efforts to buy coking coal mines overseas by state-owned CIL in Australia are in process as the company looks to supplement the requirement of country’s metallurgical coal, the PSU said in a recent report. “Pursuant to the directives of the CIL board, initiatives for acquisition of coking coal assets, with particular focus on Australia being the prime destination for sourcing coking coal to India, are in process,” Coal India Ltd (CIL) said in an annual report of 2016-17. India’s dependence on imports is particularly heavy on coking coal which is an important ingredient in the steel making process.

Country’s life insurance behemoth, Life Insurance Corporation of India (LIC) has settled claims worth more than Rs 1 trillion in the financial year 2016-17. LIC, which recently completed 61 years of its incorporation, said it had settled 215.58 lakh claims amounting to Rs 1,12,700.41 crore during the financial year 2016-17, it said in a statement. “We achieved settlement of 98.34 per cent maturity claims and 99.63 per cent of death claims in the year,” as per the statement.
LIC has assets of over Rs 25 trillion with Life Fund to the tune of Rs 23,23,802.59 crore.

Two and three-wheeler manufacturer TVS Motor has recorded a 15.7 per cent rise in its sales in August at 3,17,563 units.
The Chennai-based company, had recorded total sales at 2,74,303 units during the corresponding month of last year. Total two-wheeler sales rose to 3,09,146 units in August 2017 from 2,67,670 units sold in same month of last year. In the domestic market, sales of two-wheelers rose to 2,70,544 units from 2,38,984 units sold during same month of last year.

Auto major Mahindra & Mahindra reported a 3.75 per cent increase in total sales at 42,116 units in August. The company had sold 40,591 units in the same month last year, the company said in a statement. In the domestic market, sales were up 7.01 per cent at 39,534 units last month as compared to 36,944 units in August 2016. Exports were down 29.72 per cent at 2,582 units in August against 3,674 units in the same month last year. Sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were up 5.91 per cent at 19,325 units as compared to 18,246 units in the same month last year.

JSW Steel’s Rs 26,800-crore capex plan is on track and the company plans to spend Rs 8,000 crore this year, Joint Managing Director Seshagiri Rao said. “Our mission is to become a 40 million tonne (mt) steel company… Taken together, we have a capex plan of Rs 26,800 crore to be spent over three years. So this year, we will be spending Rs 8,000 crore. All these plans will be completed by March 31, 2020,” PTI reported citing Managing Director Seshagiri Rao, also the group’s Chief Financial Officer (CFO).

JM Financial has been appointed as the transaction advisor to the government’s over Rs 37,000 crore stake sale in HPCL to ONGC. Besides, Cyril Amarchand Mangaldas has been selected as the legal advisor for handling the stake sale. With ONGC and HPCL under the administrative control of the oil ministry, the latter has appointed ‘Protocol Valuers Ltd’ for suggesting valuation at which the government’s 51.11 per cent stake in HPCL should be sold to ONGC, sources said.

Jubilant Life Sciences said its subsidiary Jubilant Pharma has completed the acquisition of the US radiopharmacy business of Triad Isotopes Inc. Triad operates the second largest radiopharmacy network in the US with more than 50 pharmacies. Jubilant Pharma Ltd (JPL), through one of its wholly owned subsidiaries, has successfully completed the acquisition of the US radiopharmacy business of Triad Isotopes Inc, company said in a BSE filing.

Indian markets on Friday:

Indian stock market closed higher on Friday despite a weak economic growth data for the April-June quarter of the financial year 2018. The benchmark Sensex rose by 162 points to end at a three-week high of 31,892.23 on buying in auto, pharma and energy stocks. The 30-share barometer stayed in the positive zone throughout the session and hit a high of 31,944.1 before winding up 0.51% at 31,892.23 points. Also, the broader Nifty 50 ended or 0.57% higher at 9,974.40 after shuttling between 9,983.45 and 9,909.85 during the day.

Indian Rupee on Friday:

The rupee retreated from its three-week high by losing 12 paise against the US dollar to end at 64.02 after the latest GDP numbers showed the country’s growth slowed to a three-year low. Overall currency market sentiment turned highly volatile against the backdrop of concerns over a sputtering domestic economy which unexpectedly slumped a three-year low of 5.7 per cent during April-June amid lingering impact of note ban late last year and also the launch of new GST regime.

Forex reserves: The country’s foreign exchange reserves swelled by USD 1.148 billion to a new lifetime high of USD 394.55 billion for the week ended August 25 on the back of a healthy rise in core currency assets. The total reserves had declined by a marginal USD 211.1 million to USD 393.401 billion in the previous reporting week. They had touched an all-time peak of USD 393.612 billion in the week before. The foreign currency assets (FCAs), a major component of the overall reserves, increased by USD 1.142 billion to USD 370.833 billion for the week under review, RBI data showed.

US markets on Friday:

Wall Street gained on Friday as a tepid U.S. jobs report kept expectations muted for another interest rate hike this year, while investors kicked off a typically dour month for stocks on a positive note. The Dow Jones Industrial Average rose 40.01 points, or 0.18 percent, to 21,988.11, the S&P 500 gained 4.88 points, or 0.20 percent, to 2,476.53 and the Nasdaq Composite added 6.67 points, or 0.1 percent, to 6,435.33.

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