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A maturing market amid the mayhem
Shares in auto companies posted decent gains on Monday on hopes of strong sales in May.
The BSE Auto index closed 1.9 percent higher, with TVS Motors and M&M gaining more than 5 percent each. Shares in Maruti Suzuki gained 1.13 percent.
Automakers will start reporting sales numbers from Tuesday.
Fund managers plan to increase their holdings in automobile firms, a Reuters poll showed, as some top automakers posted forecast-beating results for the March quarter.
Six of the seven respondents to the poll said they would increase exposure to the sector in the coming three months.
Tata Steel’s warning on profit growth saw its shares drop nearly 2 percent in early trade on Thursday, but the counter pared losses lateto close 1.7 percent up.
The company late on Wednesday said that rising raw material costs and the euro zone’s debt crisis could crimp Tata Steel profit growth.
Mahindra & Mahindra rose over 2.5 percent after the vehicles and tractor maker said on Wednesday it would buy a 55.2 percent stake in Reva Electric Car Company.
Shares in the utility vehicle maker, worth nearly $7.1 billion, pares most of the gaines and ended 0.6 percent higher at 519.45 rupees with volumes of 0.3 million shares.
The BSE Metal index dropped 5.1 percent on Tuesday, the lowest among the sectoral indices.
The BSE Sensex also dropped to its lowest in more than three months as renewed fears over Europe’s debt woes triggered worries foreign portfolio investors will step up their withdrawals.
Shares in companies controlled by the billionaire Ambani brothers were among the big gainers on Monday after the two moved towards resolving a long-running strife.
The BSE Sensex ended 0.15 pct higher led by Reliance Industries which gained 2.5 percent at 1021 rupees.
Shares in Piramal Healthcare ended 11.8 percent lower at 502 rupees on Friday, after an announcement that pharmaceutical major Abbott will acquire Piramal Healthcare’s pharmaceutical solutions business for $3.72 billion.
Piramal Healthcare on Wednesday had denied reports that the founders were selling a stake in the drug maker, pushing its shares down more than 8 percent.
The BSE Oil & Gas Index ended 1.79 percent up in a broader market that closed 0.68 percent higher at 16519.
Lead gainers in the index were energy explorer ONGC, which ended 8.7 percent higher at 1118 rupees, and BPCL which rose 2.8 percent, after the government more than doubled natural gas prices on Wednesday.
Shares in leading engineering and construction firm L&T continued their climb and closed 3.26 percent higher on Tuesday, after a good set of quarterly numbers declared on Monday.
The firm had said it was upbeat on outlook, which helped the stock reach its best closing level in four months.