Auto Sector to back on growth path in 3-5 years frame.

Year 2019 was the worst performing year for the Auto Sector in India. With such a slowdown, almost every automobile company either in 2-wheeler segment or 4-wheeler segment, everyone reported a decline in the volume of vehicles sold compared to the corresponding season in the previous year.

But starting 2020, things are expected to change. In 2019, Indian Government had started pushing for Electric Vehicles and was aiming to move out of any non-renewable energy based vehicles 2-wheeler or 3-wheelers by 2025.

Electric Vehicle. Image Credits

Due to this push, many companies had started their activities towards the development of Electric Vehicles in their Research and Development centers. Though nothing had materialized in 2019 since it was just a beginning, but things are soon expected to pickup in upcoming 3-5 years timeline.

Automotive maker Mahindra and Mahindra had been early starter and has been actively investing towards Electric Vehicles via Mahindra Electric Mobility Ltd, which was formerly known as Reva. In 2020, many news have started pouring in where in auto makers like Tata Motors, Maruti Suzuki, Hyundai have declared their launch of upcoming models in EV category.

This push is expected to be a game changer for the revival of Automotive Industry in India which shall rise back and the benefits shall pour in, in the upcoming 3-5 years investment time-frame.

Not only car makers would benefit from this development, Automotive parts manufacturers who are suppliers to Electric Vehicle manufacturers are also going to benefit from this revolution.

Thus keep an eye of such EV related business activities and analyse the best companies with their fundamentals and growth potentials and take a judgement for investment to reap good benefits.

One Whatsapp Message destroyed 71% of Infibeam Market Value

On Friday, Infibeam's market value was eroded by 71% within a single day. The impact was so huge that the stock crashed by upto 73% and closed at 71% lower at Rs. 58.45.

All this happened over a rumoured message creating havoc among investors which was circulating over WhatsApp just ahead of the company's investor meeting.

The message circulated over the messaging platform alleged that Infibeam had given interest free and unsecured loans of Rs. 135 crore to related firms as on March 31 as mentioned in its Annual Reports.

The weekness in the stock took further hit since the stock was closely held among investors without any institutional ownership thus creating an even more selling pressure crashing it upto Rs. 58.45.

The company had to do a voluntary clarification later to the exchanges saying that there is no pending announcement or disclosure to be made which might impact its stock prices. It further clarified that it gave interest free unsecured loan to its subsidiary NSI Infinium Global Pvt. Ltd. NSI is actually a part of Infibeam. This entity operates the flagship portal of Infibeam by providing a market place for merchants.

Rupee at all time Low of 72 a dollar

Indian Rupee has fallen to an all time low of 72 against the USD on Thursday 6th September 2018.

Market has speculations concerning that US President Donald Trump could order additional tariffs on China due to which Rupee has fallen to its all time low of 72.

The speculations are around the possibility of Trump administration imposing another $200 Billion on tariffs on Chinese import probably this week. This could give rise to a significant trade dispute among the two countries. Earlier, in the past 3 months, Yuan has lost more than 6% against the Dollar which is expected to fall further thus intensifying the economic situation.

To know how Falling rupee can impact us, Stay tuned for my next post.