Tata Chemicals hits record high
Soda-ash-maker Tata Chemicals hit a new lifetime-high after gaining 6.4% today. The stock surged 22% in November and has further risen 16% in December. As per bulk deal data, promoter Tata Sons increased its stake in the company by 0.71%. As of September 2020, Tata Sons cumulatively owned 35.47% of the company. Generally, the increase in promoter stake in a company boosts investor confidence. Further, the expected demand recovery in the auto and real estate sectors augurs well for the demand for soda ash, which is a key component in the manufacture of glass used in windshields and windows.
Maruti surges ahead on strong outlook
India’s largest carmaker was the top gainer (7.3%) in the Nifty50 today. The rise in shares was supported by above-average volumes and has come after two months of sideways movement. The strong investor interest was seen after the management stated that the company expects 2021 to be better than 2020 as the economy rebounds. The strong revival in sales is expected given that sales during April-June 2020 were extremely weak. For November, the domestic passenger vehicle volumes dipped 1.7% over the same period last year. For December, however, the management expects retail sales to be strong as dealerships are reporting pending orders. Further, as per media reports, the rate of enquiries has sustained even after the festive season.
Services PMI dips in November
The manufacturing PMI figures, released earlier this week, showed that the Indian manufacturing sector lost some steam in November 2020. Today, the Services PMI gave similar indications as the figure for November dropped to 53.7 from 54.1 in the previous month. Growth constraints and travel restrictions dented the Services PMI. Nonetheless, a number above 50 means expansion in activity.