Equity Monthly Report

Transcription

1 28th February 2018

2 In Nifty-50 movement in February'18 the month of February 2018, the S&P BSE Sensex and CNX Nifty fell 4.95% and 4.85% respectively. The indices shed approximately 5% in February, logging their worst monthly loss in two years, as a combination of the reintroduction of long-term capital gains tax in the Union Budget presented on 1 February and volatility in world markets upset investors. The month started on a jittery note owing to these factors Thereafter, volatility reigned supreme in global markets, as investors were concerned about the rise in US treasury yields and leveraged bets against stock volatility were unwinding. Foreign investors pulled out Rs12,491cr from Indian equity markets in February, as the rout in global equities was triggered by a surge in US bond yields, and sky-high valuations back home took a toll on sentiments. The sell-off marked the worst ever February in terms of outflows by foreign investors. % Change In Global Indices Shanghai Composite -6.36% Hang Seng -6.21% DAX -5.71% Kospi -5.42% BSE Sensex -4.95% Nikkie % Dow Jones -4.28% FTSE -4.00% S&P % Nasdaq Composite -1.87% Straits Times -0.57% Jakarta -0.13% Bovespa 0.52% -8% -6% -4% -2% 1% World markets ended the month of February-2018 on a negative note, except for Brazil - Bovespa. Brazil - Bovespa was the only gainer, up 0.5%, whereas Chinese - Shanghai composite was the largest loser, down 6.4%. Hong Kong Hang Seng, Germany - DAX, Japan - Nikkei, US - Dow Jones, UK FTSE, US - Nasdaq, Singapore - Strait Times and Indonesia - Jakarta Composite were the other losers, down 6.2%, 5.7%, 4.5%, 4.3%, 4.0%, 1.9%, 0.5% and 0.1% respectively. The Chinese - Shanghai composite slumped 6.4%, the largest single-month decline in more than two years, as traders continued to offload holdings in big-caps for hefty gains. BSE BANKEX -8.62% % Change i n Sectoral i ndices On investment front, the FIIs sold Rs 12, Crore in equities during February 18. BSE PSU BSE CG BSE CD BSE REALTY BSE OIL&GAS -8.56% -6.32% -5.74% -5.39% -5.27% USD/INR weakened to from to during February 18 resulting in depreciation of 2.6% against USD. BSE AUTO BSE POWER BSE HEALTHCARE BSE FMCG -4.29% -4.15% -3.07% -1.91% BSE METAL -1.64% BSE IT -0.41% -10% -9% -8% -7% -6% -5% -4% -3% -2% -1% Equities Derivatives Commodities* DP

3 Auto Sales February 2018 The Indian passenger vehicle industry is headed for a record fiscal. From the first few sales numbers released by some leading carmakers for the month of February 2018, it is abundantly clear that growth is here for stay for the segment. Maruti Suzuki India With sales of 1,37,900 units in the month, the company registered year-on-year growth of 14% (February 2017: 120,735) in the domestic market. Given the pace of sales, driven by new models like the Swift and Dzire as well as the game-changing Vitara Brezza, Maruti Suzuki clearly is going to achieve its best-ever sales for a fiscal year in FY2018. Hyundai Motor India The second largest carmaker in the country by sales volumes, Hyundai Motor India sold 44,505 units in February, registering growth of 5.1% (February 2017: 42,327).The company is marching forward on the back of sizeable demand for its Grand i10, Elite i20, and the Creta SUV, which have continued to put out good performance in their respective segments. Tata Motors Tata Motors has been slowly upping its game in the Indian PV segment and its efforts are quite evident in the robust sales numbers posted by the company. It sold a total of 58,993 units last month, posting a substantial 38.22% growth (February 2017: 42,679 units). Mahindra & Mahindra UV major Mahindra & Mahindra (M&M) also announced its sales numbers and the company sold total 51,127 vehicles in February, registering growth of 19% (February 2017: 42,826 units). While sales of its UVs, which include popular models like the Bolero, Scorpio and the XUV500 grew by 7% with 20,977 units (February 2017: 19,529), its passenger cars and vans grew by a considerable 19%, albeit contributing very low volumes of 1,412 units (February 2017: 1,188). Honda Cars India registered monthly domestic sales of 11,650 units in February 2018, down 18.23% YoY. The City sedan was the bestseller with 3,885 units, followed by the WR-V crossover (3,364), Jazz (2,257), Amaze (933), BR-V (822), Brio (375) and CR-V (14). India s largest two-wheeler manufacturer, Hero MotoCorp reported total sales of 629,597 units for February 2018, thereby growing at a healthy rate of 20% YoY. It had sold 524,766 units in February last year. According to the company, February 2018 was the ninth month (in the ongoing fiscal) when it registered monthly sales breaching the 600,000 unit mark. Meanwhile, India s second largest two-wheeler maker, Honda Motorcycle & Scooter India has been registering its own milestones. The company has sold 489,591 units in February 2018, up 32.28% YoY. Last month, it sold 164,398 motorcycles (up 37%) and 325,193 scooters (up 30%). It is the largest volume gainer YoY among all the two-wheeler manufacturers in India. It has added additional volumes of 119,469 units last month alone. TVS Motor Company, India s third largest two-wheeler player and second largest scooter manufacturer, has reported total sales of 2,90,673 units in February 2018, up 37.45% YoY. It had sold 2,11,470 units in February The company has recently two top-of-theline products for the domestic as well as the potential export markets. It has launched the midsized Apache RR 310 motorcycle and the 125cc NTorq 125 scooter. Bajaj Auto sold total 3, 57,883 units in February 2018, up 31% YoY. The company had recorded sales of 2, 73,513 units in February last year. The company has recently upgraded its product line up with 2018 editions, which are largely equipped with new styling features. Royal Enfield has reportedly sold 73,077 units in February 2018, which marked a YoY growth of 25%. It had sold 58,439 units in February last year. The company has recently added new models 350X and 500X to its Thunderbird range with an aim to further boost sales.

4 Total Figure BAJAJ AUTO LTD % % TATA MOTORS LTD , % 64, % MARUTI SUZUKI (INDIA) LTD 149, , % % MAHINDRA & MAHINDRA % % TVS MOTORS 290, , % 271, % EICHER MOTORS , % % ESCORT 6,462 4, % 5, % ASHOK LEYLAND , % % HERO MOTOCORP LIMITED 629, , % 641, % Export Figure BAJAJ AUTO LTD % % TATA MOTORS LTD % 4, % MARUTI SUZUKI (INDIA) LTD 11,924 9, % % MAHINDRA & MAHINDRA % % TVS MOTORS 58,564 38, % 42, % EICHER MOTORS 1,723 1, % 1, % ESCORT % % Total Domestic Sales (Excluding Export) Figure BAJAJ AUTO LTD % % TATA MOTORS LTD % % MARUTI SUZUKI (INDIA) LTD % % MAHINDRA & MAHINDRA % % TVS MOTORS % % EICHER MOTORS 71, % % ESCORT 6, % 5, % TATA MOTORS GLOBAL WHOLESALES % % GLOBAL WHOLESALES(JLR) 56, % 49, % Global Wholesales (Jaguar) 16, % 16, % Global Wholesales (Land Rover) 40, % 33, %

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