Tuesday, July 2, 2013

Auto sales continues down trend


On global front, European Markets carried the momentum even after the bad data from China and markets performed well on the hopes that in Thursday's ECB meeting, interest rates and stimulus will be kept unchanged and all eyes are fixed on how the US markets will perform.

In April-May 2013-14, the Indian eight core sectors registered a growth of 2.4% as against 6.5% in the same period last year. The decline in the growth rate in May was mainly on account of negative growth witnessed in the production of coal, crude oil, natural gas and fertiliser.

Auto sector has witnessed de-growth in the month of June 2013 amidst an overall decline in the auto industry. Car companies continue to struggle as they reported lower sales in June because of a variety of reasons ranging from high interest rates, fuel prices to declining economic growth. The depreciating rupee resulting in spiralling fuel costs coupled with high interest rates and the additional excise duty on SUVs has further dampened the industry.

Supply of natural rubber is extremely tight in the domestic markets, RSS4 grade closed with a positive note at `.181 a kg at Kottayam. Today, RSS3 grade closed at `.161.28 a kg at Bangkok, while Malaysian SMR20 closed at `.132.82 a kg. On the Tokyo Commodity Exchange, July futures series closed at ¥240, August at ¥240, September at ¥241.6, October at ¥243.2, November at ¥244.6 and the contract for delivery in December closed at ¥245.6 a kg, after touching a low of ¥239.3 a kg. While on the National Multi Commodity Exchange July futures were trading at `.190.52, August at `.186.30, September at `.179.74, October at `.174.76.06, November at `.173.17 and December at `.173.26 a kg., at 12.10 pm IST.

Read lot more in Rubber4U – 15th July 2013 issue

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