The
Auto pack has rebounded excellently this year making the pack a stand out
outperformer on the Indian markets. It’s been a sector which even the bears like,
that in itself says a lot about it. This article is however not about the
entire auto sector. It’s about one small section within the auto sector that is
nonetheless an important one. I’m concentrating on companies which are involved
in the manufacture of trucks and similar heavy vehicles. If you are a long term
investor then these are companies that you can seriously consider adding to
your portfolio.
If you’re unhappy with the
general 6% rate of interest that your bank ,a private one or a public sector
one is offering then this is an offer that you can seriously take a good look at.
Not only does it offer a higher rate of interest, it’s also from a reputable
institution.
The Tata Motors Fixed Deposit Scheme has been well known for quite some
time with the financially educated for the past few months. If you too have
heard of it and are a tad bit miffed that you might have missed the boat, relax!
Because there is still time to invest in this scheme which compared to your
local bank offers a much higher rate of interest.
At
a well organized media conference on Wednesday Ford Motors unveiled its newest model the Figo.It’s in the spotlight because
it is Ford’s first exclusive ‘For India’
model. A company which failed to realize the importance of India’s small car
market five years ago is now making amends. The Figo is meant to attract the
middle income average Indian. Ford has lost out a lot of money because it
dismissed the small-car market in India a few years ago. This car is Ford’s
attempt to redeem itself and get back in the game by making significant inroads
into the Indian market.
Ten months ago, in the month of November theindiastreet.com made a bunch of recommendations
in an article titled “10
Bargain Buys In Today's Market”. Out of the ten names I listed, there
have been particularly two names which had you backed with your money at that
time you would have earned a guaranteed profit by now and a huge one #1 Tata Motors - When I wrote the
previous article the company was quoting around the 120 rupees/share range. As
of today’s closing the same share quotes at rupees 604/share.An investment at
that time would have guaranteed a return of more than 300% Percent as of today.
With stock #2 Biocon your
return as of today would be 100%.And in the case of SAIL, ICICI Bank, Tata Steel;
the return varies from 100% to 250%.
The
Tata Motors rally is one which has baffled many market experts but we called it
right. Without getting too excited I want to explain the reasons for this
phenomenal rally.
A
week which began with a flurry of selling activity has ended today on a not so
bad albeit somber note. The
last day of the trading week saw the Sensex fall by 106 points. Not a
shabby effort especially since we saw the Sensex close beautifully yesterday
with a 498 point push. The Sixteen Thousand Level is the next significant
barrier to break from the bull side but caution has been the dominant sentiment
for the past fortnight on the markets. This is setting up the stage for the
market indices to become range bound in the coming week because neither the
bull side nor the bear side wants to make the first move.
In
view of this situation here are a few stocks that have seen significant
movement during the short term and are volume stocks which are bull and bear
friendly in the coming week.
The country is abuzz with the
launch of the world’s cheapest car. A car which has caught the imagination of
every Indian car enthusiast. The commercial launch of the NANO has finally happened
after much trial and tribulation .So for the moment the glory belongs to the men
at Tata Motors headed by one Ratan Tata.
However after the euphoria dies down it is time to get down to brass tacks. Now
that the Nano is out, the focus shifts on future performance. Will
the much talked about four wheeler be able to live up to the hype?
When the month of February started
information began doing the rounds that the launch of the Tata Nano would be
delayed by at least a year. We’d be able to buy it only sometime next year. The
top brass at the company including its Managing DirectorRavi Kant remained non
committal about the Nano, making statements to the effect that led us to
believe that we’d see the world’s cheapest car only in 2010.
As we now realize this has been a
very shrewd business move. An official statement from Tata Motors released a
few hours ago has now confirmed that the wait for the Nano ends on March 23,
2009.It’s the day the car will be finally launched.
It was a year ago that Ratan Tata
of the Tata Group unveiled his biggest automobile achievement: a car made
indigenously that would cost an amazing 1 lakh rupees – the Nano.
Since then nine out of ten things for the Chief of the Tata Group have gone wrong.
The Nano plant located in West Bengal became a political pawn for agricultural
land which made the manufacture of the car near impossible.The recession hit,
rendering the entire auto industry worldwide in a drought .The Nano plant had
to finally move to the state of Gujarat at the end of the year. Just when it
seemed that everything was over the dreadful attack on the Tata Group’s Taj Mahal
Hotel happened.
In India’s often murky economic dealings,
one example of something that’s worked and worked well to such an extent that
it can even be considered a success and an experiment that can be the
forerunner for a better business model is the phenomenon of the Special Economic Zone or SEZ. It’s been one of the few minor successes
in India’s economic movement .One reason that it’s worked well is because of
the close integration between the state governments and the central government
which makes it an example of a federal enforcement above the dealings of
national politics. Nonetheless even the SEZ’s have scope to improve.
The cost of buying that car just
got a whole lot cheaper. Carmakers across India struggling with sluggish sales
have decided to cut prices of various models. It’s something that’s been a
collective industry decision as every major auto maker has already done it or
has promised to do it in the coming days. The intent for such a move is
certainly to add life to a struggling auto industry worldwide that has also
impacted Indian companies which means that now could mark the beginning of a
car buying season.
The country is abuzz with the
launch of the world’s cheapest car. A car which has caught the imagination of
every Indian car enthusiast. The commercial launch of the NANO has finally happened
after much trial and tribulation .So for the moment the glory belongs to the men
at Tata Motors headed by one Ratan Tata.
However after the euphoria dies down it is time to get down to brass tacks. Now
that the Nano is out, the focus shifts on future performance. Will
the much talked about four wheeler be able to live up to the hype? 
When the month of February started
information began doing the rounds that the launch of the Tata Nano would be
delayed by at least a year. We’d be able to buy it only sometime next year. The
top brass at the company including its Managing Director Ravi Kant remained non
committal about the Nano, making statements to the effect that led us to
believe that we’d see the world’s cheapest car only in 2010.
It was a year ago that Ratan Tata
of the Tata Group unveiled his biggest automobile achievement: a car made
indigenously that would cost an amazing 1 lakh rupees – the Nano.
Since then nine out of ten things for the Chief of the Tata Group have gone wrong.
The Nano plant located in West Bengal became a political pawn for agricultural
land which made the manufacture of the car near impossible.The recession hit,
rendering the entire auto industry worldwide in a drought .The Nano plant had
to finally move to the state of Gujarat at the end of the year. Just when it
seemed that everything was over the dreadful attack on the Tata Group’s Taj Mahal
Hotel happened. 
In India’s often murky economic dealings,
one example of something that’s worked and worked well to such an extent that
it can even be considered a success and an experiment that can be the
forerunner for a better business model is the phenomenon of the Special Economic Zone or SEZ. It’s been one of the few minor successes
in India’s economic movement .One reason that it’s worked well is because of
the close integration between the state governments and the central government
which makes it an example of a federal enforcement above the dealings of
national politics. Nonetheless even the SEZ’s have scope to improve. 
The cost of buying that car just
got a whole lot cheaper. Carmakers across India struggling with sluggish sales
have decided to cut prices of various models. It’s something that’s been a
collective industry decision as every major auto maker has already done it or
has promised to do it in the coming days. The intent for such a move is
certainly to add life to a struggling auto industry worldwide that has also
impacted Indian companies which means that now could mark the beginning of a
car buying season. 