Stock Market

Sensex, Nifty flat; telcos fall on Jio, banks & autos gainers


Chillicious Bureau

1:55 pm Auto: India’s second largest commercial vehicle maker Ashok Leyland said total sales in August fell 6 percent on account of lower growth in M&HCV segment.

The company sold 10,897 vehicles in the month gone by, compared with 11,544 units sold in same month last year.

Medium & heavy commercial vehicle sales during the month declined 8 percent to 8,201 units while light commercial vehicle sales grew by 2 percent to 2,696 units on yearly basis.

1:45 pm Telecom stocks: Idea Cellular’s focus on the rural sector has been the differentiating factor for the company as taking mobile broadband to small towns has paid rich dividends, says Himanshu Kapania, MD of Idea.

In an interview with CNBC-TV18, he said that the new data tariff plans from Bharti don’t show a data price drop but is rather a pricing innovation.    

He further said that the company’s long term strategy is volume led profit growth and is confident of delivering double digit volume growth post monsoon.

1:30 pm Market outlook: For several months now, noted analyst Sanjeev Prasad of Kotak Institutional Equities has maintained that the gush of liquidity globally has lifted stock prices to the point where fundamentals do not really matter. While he still maintains that it is difficult to say where the liquidity-driven rally stops, he says that the “easy-money trade” is over. “It is clear that the Fed will hike rates at some point,” he told CNBC-TV18 in an interview, even though he does not see a major correction in stocks. “It is just that the market will go back to focusing on fundamentals.”

Don’t miss: Bharti, Idea fall 9% as Ambani announces Reliance Jio tariff

The market continues to remain sluggish as the Sensex is up 31.71 points or 0.1 percent at 28483.88. The Nifty is up 4.30 points at 8790.50. About 1143 shares have advanced, 1331 shares declined, and 178 shares are unchanged.

GAIL, ICICI Bank, M&M, Tata Motors and Coal India are gainers while Bharti, Wipro, Asian Paints, Adani Ports and Reliance are losers in the Sensex.

Telecom stocks are under pressure as war in the sector is heating up after Reliance Jio is launched with attractive price points. Shares of Bharti and Idea fell 9 percent intraday on Thursday.

Reliance Industries’ much-awaited Reliance Jio will be launched on September 5 and will be commercially launched on December 31. Addressing shareholders in the annual general meeting, Ambani said that Jio will bridge the gap to data abundance from data shortage.

Disclaimer: Reliance Jio is a part of Reliance Industries that  owns Network 18 Media &