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Indian equity markets traded in the positive during the last two hours of trade after opening on a flat note earlier today. Sectoral indices traded firm except IT and FMCG stocks.
The BSE-Sensex is trading higher by 38 points and NSE-Nifty is trading higher by 11 points. BSE Mid Cap and BSE Small Cap indices are trading up by 0.7% and 0.8% respectively. The rupee is trading at 54.85 to the US dollar.
Automobile stocks are trading mixed with gains led by TVS Motors and Eicher Motors while Ashok Leyland and Mahindra & Mahindra (M&M) are among the losers. As per a leading daily, TVS Motors is thinking of a long term technology partnership with BMW. With this, TVS wants to source technology for producing high end bikes. We may note here that BMW got into the high-end performance bikes segment in India in 2010 and is currently selling such bikes in the country. According to the management, TVS is in talks with the German luxury car and bike manufacturer and may announce a deal by the end of this fiscal. Also, TVS is looking at launching bikes beyond the 200cc segment and targeting to launch one in the next couple of years.
Engineering stocks are trading in the green led by Shanthi Gears and Thermax Limited. According to a leading financial daily, L&T is planning to set up one of the largest residential projects in Mumbai, measuring up to two million square feet over 20 acres of vacant land on its Powai campus in Mumbai. The residential real estate prices in Powai and adjoining areas are around Rs 25,000 per sq ft. This means the project would yield an estimated Rs 500 bn in sales. The project comes at a time when L&T is planning to shift its switchgear unit at its adjoining Navi Mumbai campus. L&T has already constructed two commercial towers, one has been leased to JP Morgan and the other is occupied by L&T Infotech. But the new towers will be residential.