Tata Motor’s Nano – the world’s cheapest car - launch provides a fresh breath to the sensex. Markets all across Asia boosted the investors confidence and opened on a high, on Monday morning. Shares of Tata Motors were in the limelight. The upmove in the sensex was led by the metals and oil and gas stocks.
With revenues of Rs 32, 426 crore, Tata Motors is the country’s largest automobile company. And with Nano in its kitty, its position is all set to strenghten. Tata Motors is expecting to sell 15,000-20,000 units per month of Nano by the end of FY 2009. At a very conservative margin of 5 per cent, this sale adds close to Rs 100 crore to the company’s books.
Global auto analysts predict that in the next five years Tata Motors will sell over 12 lakh units of light vehicles per year, of which Nano will constitute more than half. This is a good news for people who are holding Tata shares in their portfolio. Nano has given a good chance to the share to trade in the green.
The Nano effect was quite evident on the moods of the bourses on Monday morning. Bombay Stock Exchange’s 30-share Sensex was up 150.10 points at 9116.78 on Monday. National Stock Exchange’s benchmark Nifty climbed 47 points or 1.67 to 2859.65 from Friday’s close. Japan’s Nikkei average rose more than 2 percent to a six-week high on Monday.
Other Asian markets were also trading high. The reason was that they were optimistic that the US government’s efforts will revive lending and ease the global economic slump. The Nikkei was up 2 per cent, Topix rose 1.95 per cent, Hang Seng climbed 2.29 per cent and Straits Times advanced 1.56 per cent.
Meanwhile, US stocks slid on Friday as the Federal Reserve’s plan to rekindle consumer and small business lending fell short of expectations and General Electric was hit by analysts’ bearish comments.
The Dow Jones Industrial Average slipped 122.42 points, or 1.65 per cent, to 7,278.38. The Standard & Poor’s 500 Index shed 15.50 points, or 1.98 per cent, to 768.54 and the Nasdaq Composite Index lost 26.21 points, or 1.77 per cent, to 1,457.27.
With the present status of sensex and the growing popularity of Nano, people holding shares of Tata Motors can breadth a sigh of relief.
With revenues of Rs 32, 426 crore, Tata Motors is the country’s largest automobile company. And with Nano in its kitty, its position is all set to strenghten. Tata Motors is expecting to sell 15,000-20,000 units per month of Nano by the end of FY 2009. At a very conservative margin of 5 per cent, this sale adds close to Rs 100 crore to the company’s books.
Comment by ankur — April 1, 2009 @ 12:53 pm