Metal stocks gain, PVR-INOX hits 52-week high, Auto sales zoom & more

NIFTY50: 19,435 ▲ 181 (+0.9%)
SENSEX: 65,387 ▲ 555 (+0.8%)

• Benchmark indices were upbeat today, supported by strong macroeconomic data
• In all, 44 of the NIFTY50 stocks closed in the green
• India's manufacturing PMI rose to a three-month high of 58.6 in August

Among the NIFTY sectoral indices, Metal (+2.8%) and Auto (+1.6%) were the top gainers, while Pharma (-0.5%) was the sole loser.

What’s trending

⭐ Metal stocks gain on robust China data 

Metal stocks saw strong traction today, with JSW Steel, Tata Steel, Hindustan Copper and Hindalco rising in the range of 2% to 5% today. The rally in metal stocks comes after China’s manufacturing PMI rose to 51 in August 2023 from 49.2 in July. This comes after the Chinese government announced slew of measures to boost its property and infrastructure segment. Growth in the Chinese economy is positive for companies dealing in industrial commodities, as China is one of the world's largest consumer of metals.   

⭐PVR-INOX hits 52-week high  

PVR-INOX shares touched a new 52-week high after the company reported stellar box office revenues in August 2023. The multiplex operator recorded gross box office revenue of ₹532 crore and welcomed 1.9 crore cine-goers in August. However, the company’s shares witnessed profit booking and closed 0.6% lower after hitting a new 52-week high intraday.  

⭐ Mahindra Logistics to collaborate with Flipkart 

Mahindra Logistics shares rose nearly 2% today after the company announced a collaboration with e-commerce platform Flipkart to offer logistics solutions. As part of the deal, Mahindra Logistics will provide a fleet of heavy commercial vehicles to enhance Flipkart’s route management and network operations.

⭐ MTAR surges on receiving defence licence 

Shares of the defence equipment maker rose more than 20% this week. This comes after the company received a defence industrial license for production of various mechanical and electronic subsystems in the defence sector. This will help the company to collaborate with foreign multinational companies on various defence projects.

In Focus

Auto sales zoom ahead in August

Automakers have released their sales numbers for August 2023. As per experts, vehicle dispatches to dealerships generally rise in August as companies look to build up inventory amid expectations of higher sales in the upcoming festive season. Hence, the August number holds key to this trend. So how did auto sales perform last month? Let’s take a closer look.

Passenger vehicle sales remain stable  

India’s largest carmaker Maruti Suzuki said that its domestic car sales rose by over 16% YoY to 1.5 lakh units. Higher sales came on the back of more than two-fold jump in utility vehicle sales.

Meanwhile, Mahindra & Mahindra’s domestic SUV sales rose 26% YoY in August to 37,270 units as demand for its key SUV brands continues to remain strong. On the flip side, Tata Motors’ domestic sales slipped by 3% YoY to 45,933 units. However, its electric car business witnessed strong growth, clocking a 55% YoY jump in sales to over 6,000 units. 

Commercial vehicle sales in the fastlane    

In the commercial vehicle segment, Tata Motors reported a 14% YoY jump in sales of heavy commercial vehicles (HCV) to 9,000 units. Meanwhile, Ashok Leyland also reported a similar rise with its domestic truck sales rising 9% YoY to 7,709 units. 

Commercial vehicles (CV) sales have bounced back after a brief period of slow growth during the monsoon. Additionally, experts believe CV sales improved amid a rise in freight demand ahead of the upcoming festive season. 

Two-wheeler sales remains a mixed bag   

Sales in the two-wheeler segment was a mixed bag, with Bajaj Auto reporting 20% YoY fall in overall sales to 2.8 lakh units, mainly due to a decline in domestic sales. Meanwhile, sales of Eicher Motors-owned Royal Enfield rose 11% to 77,583 units helped by new launches such as the Hunter 350. TVS Motors total two-wheeler sales grew by 5% YoY to 3.3 lakh units owing to strong dispatches in the domestic market even as exports saw a decline.

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