India’s passenger vehicles sales sink for ninth month in July

India’s passenger vehicles sales sink for ninth month in July
In this photograph taken on July 23, 2019 workers assemble a car at a FCA India Automobiles manufacturing facility in Ranjangaon, some 200km east of Mumbai. (AFP)
Updated 13 August 2019

India’s passenger vehicles sales sink for ninth month in July

India’s passenger vehicles sales sink for ninth month in July
  • India’s S&P BSE auto sector index has fallen 23 percent this year, with the country’s top automaker Maruti Suzuki’s market valuation falling 18.3 percent

NEW DELHI: India’s domestic passenger vehicle sales fell for the ninth straight month in July, an auto industry body said on Tuesday, amid a deepening crisis in the country’s automobile sector that has triggered large-scale job losses.
Sales of passenger vehicles to car dealers fell 30.9 percent to 200,790 in July, data released by the Society of Indian Automobile Manufacturers (SIAM) showed. Commercial vehicles sales fell 25.7 percent to 56,866 units, SIAM said.
Motorcycle and scooters sales fell 16.8 percent to about 1.51 million units, while passenger car sales fell 36 percent to 122,956 units, the data showed. Domestic passenger vehicle production was down nearly 17 percent in the month.

FASTFACT

23% - India’s S&P BSE auto sector index has fallen 23 percent this year.

“The data shows an urgent need for a revival package from the government. The industry is doing everything possible to increase sales, but it needs government support,” Vishnu Mathur, director general of SIAM, said.
India’s S&P BSE auto sector index has fallen 23 percent this year, with the country’s top automaker Maruti Suzuki’s market valuation falling 18.3 percent.
The fall in car sales comes at a time when demand for consumer goods is falling amid signs of an economic slowdown in India.


Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
Updated 18 min 5 sec ago

Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
  • "Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations," a financial expert says

DUBAI: Investors are expecting a “Biden bounce” in global markets following the inauguration on Wednesday of Joe Biden as the 46th US president.

“History teaches us that we can expect the markets to react favorably to the inauguration of a new US president — and this time around it is likely to be no different,” said Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisers, with over 80,000 clients and $12 billion under advisement.

“Indeed, Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations because it is hoped the incoming administration will bring stability and, possibly, a halt to the uncertainty following the fiercely contested election. 

“Investors will also be buoyed by the $1.9 trillion fiscal stimulus announced by Biden, the Federal Reserve’s willingness to support markets, the new president’s multilateral trade agenda and his plans for stepping up the vaccine rollout. All of this will encourage confidence and optimism,” Green said.

Mazen Al-Sudairi, head of research at Riyadh-based financial services company Al Rajhi Capital, agreed with the optimism regarding a “Biden bounce.”

“One of the important outcomes with Biden is stability in the market. But there is also the stimulus factor coupled with the vaccine that is giving an indication of recovery in the market. This perceived unity in the US will be healthy for the global and Saudi market,” he told Arab News.

However, Green said that investors should be cautious for three reasons: “First, a market rally is going to be difficult to sustain indefinitely due to the enormous economic scarring caused by the pandemic.

“The major long-term headwind is mass unemployment, which is hitting demand, growth and investment on Main Street and which, ultimately, will have to impact Wall Street.

“Second, the new administration will have policies that will have an effect on different sectors of the economy. There will be a readjustment period that needs to be taken into account.

“And, third, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of sectors are bringing up entire indexes,” he said.