Indian stock market is trading near its lifetime high and investor community is waiting for results. While many market and technical analysts have downplayed the role of politics and have said that Indian economy is strong, there is growing concern over the next government in India.
The ongoing elections have created an uncertainty in the mind of investors. Markets are staying range-bound and waiting for election outcomes on 16 May.
The business community favors a stable government. There is growing consensus that the major opposition party BJP could make the next government. However, the AAP factor could spoil the BJP campaign. Many regional parties have also decided to keep BJP out of power. The future of the country will depend on the number of seats NDA combine will get in the elections.
Among Indian stocks, major gainers on Friday were Tata Power, Ambuja Cements, Lupin, BPCL and HCL Tech. Among major losers were Jindal Steel, Tata Steel, Larsen, Sesa Sterlite and Maruti Suzuki.
The earnings season has some positive surprises for investors. While automobile sector is suffering due to lower sales, Bajaj Auto has managed to increase its market share to 20 percent compared to 17 percent in December.
Maruti Suzuki has eyed a medium term investment of Rs 6,000 crore, portion of which will be used to fabricate vehicle stock yards in India by the next 1-2 years.
After introducing the novel edition of ‘Swift’, Maruti Suzuki Chief General Manager (Marketing) Shanshank Srivastava stated, “Maruti Suzuki has planned a medium term investment of Rs 6,000 crore for building of stock yards and manufacturing unit in the country.”
Country’s biggest car manufacturer launched its initial stock yard with a capacitance to park 2,000 units in Bangalore that recently turned functional.
The second yard would be introduced Nagpur, whilst the sites for some others are yet to be determined.
Mr. Srivastava added that one of the yards would also be set up in Madhya Pradesh.
Out of the said Rs 6,000 crore investment, about Rs 1,800 has been spent on the company’s second manufacturing facility at Manesar near the national capital, which would be ready shortly.
Around Rs 1,900 crore will be invested on the third division, which will also come up at Manesar.
Remaining finances would be used on a research and development plant at Rohtak, stock yards and brand centres.
Maruti Suzuki envisages establishing 14 brand centres in India to exhibit its products.
While talking after the introduction of the novel ‘Swift’, he said, Maruti Suzuki’s sale chart had grown sharply with around 12,000 units being sold on a monthly basis in the country.