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Auto Sales Shift into High Gear for August |Stock Market Weekly Update Sep 02

Auto Sales Shift into High Gear for August |Stock Market Weekly Update Sep 02

Auto Sales Shift into High Gear for August

Indian Stock Market Update | Auto Sales Shift into High Gear for August

Hello Readers!

Hello there! We trust you had an amazing week

This reading diet talks about the winning play of sales figures of Indian auto companies!

Car companies have shared their sales numbers for August 2023. And it is evident that carmakers send more cars to dealerships in August to prepare for the festive season when people buy more cars. So, how did car sales do last month? Let’s find out.

Cars for Personal Use Did Well!

India’s biggest carmaker, Maruti Suzuki, sold over 1.5 lakh cars in India last month, a 16% increase compared to the same month the previous year. They sold a lot of SUVs. Mahindra & Mahindra sold 26% more SUVs in August, which is excellent for them.

On the other hand, Tata Motors sold 3% fewer cars than last year. But they did really well with electric vehicles, dealing 55% more than last year, over 6,000 of them.

Truck Sales Picked Up Speed!

Companies like Tata Motors and Ashok Leyland sold more big trucks. Tata Motors sold 14% more of these trucks, and Ashok Leyland sold 9% more domestic trucks. This is because more stuff is being moved around as we get closer to the festive season.

Two-Wheelers Had Mixed Results!

Bajaj Auto sold 20% fewer bikes last month, mainly because fewer people in India bought them.

Royal Enfield, owned by Eicher Motors, sold 11% more bikes thanks to a new model they released called the Hunter 350. 

TVS Motors sold 5% more bikes in India but fewer in other countries.

So, some car companies did well; some sold fewer cars, and ample truck sales increased. Bike sales had a mix of good and not-so-good news.

🧾In this Article

📈Market Outlook

–Mr. Ratnesh Goyal, Senior Research Analyst, Arihant Capital.


Let’s look at the daily chart of Nifty. We see observing prices have closed above 50 DMA & upper line of the channel, and on the weekly chart, we get close above the short-term moving average; if we analyze both chart patterns, it indicates that we can adopt the “Buy on Dips” approach once again. If Nifty starts trading above the 19,550 level, then it can touch the 19,700-19,850 level, while on the downside, support is 19,400, and if it starts to trade below, then it can test the level 19,250 and 19,000 levels.

Bank Nifty

 If we look at the daily chart of Bank-Nifty, we observe the prices close below the 50-day moving averages. Still, close above the upper line of the channel, and on the weekly chart, we observe the “Doji” candlestick formation. Bank-nifty starts trades above 44,700, then can touch 44,950 and 45,200 levels. However, downside support comes at 44,500; below that, we can see 44,350 and 44,100 levels.

🔎Stocks in News

🚗 Bajaj Auto’s subsidiary, Bajaj Auto Consumer Finance, has received approval from the Reserve Bank of India (RBI) to commence its NBFC (Non-Banking Financial Company) business.

💰 HFCL has raised Rs 353 crore through a qualified institutional placement (QIP).

💲 BSE (Bombay Stock Exchange), the company, has increased the share buyback offer price to Rs 1,080 per share, up from the previous Rs 816.

🏢 Adani Group has refuted and rejected the allegations made in the OCCRP report.

📉 Reliance’s Jio Financial Services will be removed from the BSE Indices starting September 1.

🏦 Indian Bank is planning to raise to Rs 4,000 crore through various means.

💳 Kotak Mahindra Bank has introduced a UPI (Unified Payments Interface) feature on its Digital Rupee (e₹) app.

🔥 Indian Oil plans to increase its natural gas consumption by 2.5 times by 2030.

💸 Airtel Uganda intends to raise to $216 million through an Initial Public Offering (IPO).

💷 Gillette India has declared a dividend of Rs 50 per share.

🌟 Rashtriya Chemicals and Fertilisers has been conferred the status of a ‘Navratna’ company.

🛠️ Schaeffler India has received board approval to acquire Koovers for approximately Rs 142 crore.

☀️ SJVN Green Energy has received an order from Assam Power Development to construct 3 solar projects.

🍽️ Zomato: Tiger Global has sold its remaining 1.44% stake.

👥 Reliance has appointed Isha Ambani, Akash Ambani, and Anant Ambani as board directors.

📅 L&T (Larsen & Toubro) has set September 12 as the record date for its Rs 10,000 crore share buyback program.

🛢️ BPCL (Bharat Petroleum Corporation Limited) is planning to invest around Rs 1.5 lakh crore in its initiative, ‘Project Aspire’.

🛡️ Bharat Forge’s subsidiary, Kalyani Rafael Advanced Systems Pvt. Ltd., has secured an order worth Rs 287.5 crore from the Ministry of Defence.

🏞️ Patel Engineering has received an order for the Dibang multi-purpose project in Arunachal Pradesh.

💼 Vedanta has won a $1.1 billion cost-disallowance arbitration case.

📰 Quick Bites

📈 Vishnu Prakash R Punglia’s IPO witnessed an impressive subscription rate of 87.82 times, with retail investors subscribing 32.01 times.

🚀 ISRO (Indian Space Research Organisation) is set to launch the Aditya-L1 solar mission on September 2.

🚗 India’s auto industry is projected to secure the 3rd position globally by 2030.

☀️ Solar capacity addition in India experienced a 58% year-on-year decline, reaching 1.7 gigawatts in the April-June quarter, as reported by Mercom India.

💰 The government has approved a subsidy of Rs 200 per domestic LPG cylinder, while the subsidy for the Ujjwala scheme has been increased to Rs 400.

🌿 Union Minister Nitin Gadkari unveiled the world’s first BS-VI (Stage-II) electrified flex-fuel vehicle, a 100% ethanol-fueled (E100) variant of the Toyota Innova.

💼 Rishabh Instruments IPO is scheduled to be open from August 30 to September 1, with a price band ranging from Rs 418 to Rs 441 per share.

📊 Pyramid Technoplast IPO made a successful debut, listing on NSE at Rs 187, a 12.65% premium, and on BSE at Rs 185, an 11.44% premium.

💱 NSE’s exchange-traded currency derivatives have recorded approximately 2,000 crore contracts worth Rs 609 lakh crore in the last 15 years.

🚇 Delhi Metro achieved a historic milestone by recording its highest-ever daily passenger journeys, totalling 68.16 lakh, on August 28, according to DMRC (Delhi Metro Rail Corporation).

🥤 PepsiCo India has joined the Open Network for Digital Commerce (ONDC) initiative.

🌱 Sustainability Corner:

🌱 Tata Steel has earned recognition as the world’s most sustainable steel company by the World Steel Association. The company is dedicated to reducing its carbon footprint and fostering sustainable practices.

🌍 Infosys has secured the third spot as one of the world’s most sustainable companies according to Corporate Knights. Infosys has set ambitious goals for reducing carbon emissions and actively promotes sustainability.

🌾 Mahindra & Mahindra’s “Farm to Fork” initiative aims to advance sustainable agriculture practices in India, focusing on reducing food waste and promoting sustainable farming methods.

🍃 Hindustan Unilever’s “Project Prabhat” is committed to sustainable tea farming in India, enhancing small tea farmers’ livelihoods while advocating sustainable farming practices.

🌏 Wipro has been acknowledged as a global sustainability leader by the Dow Jones Sustainability Index, actively working to minimize its carbon footprint and advocate sustainability.

💡 Reliance Industries plans to invest $10 billion in clean energy over the next three years, with the goal of achieving net-zero carbon emissions by 2035.

☀️ Adani Green Energy is set to construct a solar cell and module manufacturing plant in Tamil Nadu with an annual production capacity of 2.5 GW, creating over 10,000 jobs.

☀️ Tata Power intends to build a new 100 MW solar project in Maharashtra, generating electricity to power over 70,000 homes.

🏡 Hindalco Industries’ “Project Nandghar” initiative aims to promote sustainable rural development in India, offering modern amenities like clean drinking water, sanitation, and healthcare facilities to rural communities.

🌿 Bajaj Auto has been recognized as one of the world’s most sustainable companies by Corporate Knights, actively reducing its carbon footprint and promoting sustainability

💡🍬 Knowledge Candy:

In August 2023, the Indian stock market didn’t do so well. 

It dropped because of a few reasons like prices going up in India, problems around the world, and people selling their stocks after a good month in July. What might happen in September for the stock market?

Firstly, the month began with some good news: India’s economy grew by 7.8% in the first part of the year, which is better than expected. This happened because the service sector did well, and the government spent more money.

Next, people who watch the economy will look at some important numbers in September. They will check something called the Purchasing Managers’ Index (PMI) for factories. In July, it went down a little but still showed that factories were doing okay.

We’ll also see how prices for things we buy every day, like food, change in August. In July, prices went up a lot because some foods became more expensive. Now, people want to know if prices keep going up or not.

In August, some new companies started selling their shares to the public, and they did well. This might happen again in September.

Lastly, in September, India is having a big meeting with other countries. They might talk about some important things like trade with the UK and Europe.

So, September could be a good month for the stock market because some good news about the economy, and other things happening in India could make it interesting too.

Happy reading!

Also Read: Is India Experiencing The Rupee Paradox?

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