Tough task ahead for govt to meet divestment target, global manufacturing sector shrinking; all this and more on Moneycontrol Pro

Divestment through the exchange-traded funds route of CPSE and Bharat 20 and a small IPO from railway ticketing company IRCTC is unlikely to help the government meet its target.

Moneycontrol.com October 03, 2019 11:59:22 IST
Tough task ahead for govt to meet divestment target, global manufacturing sector shrinking; all this and more on Moneycontrol Pro
  • Divestment through exchange-traded funds route of CPSE and Bharat 20 may not help govt meet its target

  • The September PMIs show that the manufacturing sector continues to shrink in many countries

  • Auto sales in September continued to show sharp declines in key segments such as two-wheelers, passenger vehicles and even commercial vehicles

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The government will need out of the box thinking to meet its divestment target

The shortfall in government revenue due to the corporate tax cut has to be made up by raising money from elsewhere. Enter disinvestment in public sector undertakings. The problem is that while disinvestment targets are being raised, the government is taking baby steps to meet them. Divestment through the exchange-traded funds route of CPSE and Bharat 20 and a small IPO from railway ticketing company IRCTC is unlikely to help the government meet its target. Read here to see what needs to be done.

Tough task ahead for govt to meet divestment target global manufacturing sector shrinking all this and more on Moneycontrol Pro

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Global markets plunge as manufacturing PMIs slump

The September Purchasing Managers Indices (PMIs) show that the manufacturing sector continues to shrink in many countries. India is still doing relatively better but that isn’t good enough. Read here to know why, the state of the global manufacturing sector and what this means for the world’s dependence on the services sector for growth.

Chart of the day: Auto industry consensus earnings in FY20 headed for a cut

Automobile sales in September continued to show sharp declines in key segments such as two-wheelers, passenger vehicles and even commercial vehicles. While sequential sales are improving, the pace of decline so far signals that earnings will be cut after Q2 results are announced. Read here.

This fallen auto ancillary can make a cool addition to your portfolio

This auto ancillary stock has fallen sharply due to the industry slowdown. But it is expected to do well on the back of its order pipeline and new order wins. It has also forayed into international markets with the supply of components to Renault Nissan for its models in Brazil and to a model made by Suzuki in Indonesia. These would help in diversifying its sources of revenue. Read here to know more on why our analyst likes the stock.

Technical picks

1. Escorts: Escorts is in a strong uptrend and has taken the support of a rising trend line further a break out of a flag pattern. Read here to know how to trade this stock.

2. SBI: SBI has broken through its support level and is expected to remain weak. Read here to know how to trade this stock.

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