With most other Asian and European stock markets closed on account of NewYear holiday today, the indices in Indian stock markets reacted very positively to the US fiscal cliff deal. Buying interest in commodity, auto and banking stocks ensured that the indices close well in the positive. While the BSE Sensex closed higher by around 154 points (up 1%), the NSE- Nifty closed higher by 46 points. The BSE Mid Cap and BSE Small Cap indices also ended higher by around 1.0% each.
The rupee was placed at Rs 54.99 to the dollar at the time of writing.
India's largest power transmission utility Power Grid Corporation of India (PGCIL), is planning to invest Rs 163 bn in two phases in Bihar, in a bid to ramp up the electricity grid system of the state. In this regard, the company has entered into Joint Venture (JV) with Bihar State Power Holding Company (BSPHCL) to form new JV Company Bihar Power Grid company. The JV company will take up the works of strengthening and augmentation of transmission system in Bihar and the central utility and the state Public Sector Undertaking (PSU) would have equal 50% stake each in the venture. PGCIL is currently implementing Rs 30 bn worth of transmission projects in Bihar. The current system strengthening will be carried out in two phases of Rs 63 bn and Rs 100 bn each.
Automaker Mahindra & Mahindra (M&M) was amongst the top gainers in the sector today on the back of enthusing sales growth numbers. The company reported 5.9% increase in sales at 45,294 units in December 2012. In the domestic market, the company registered a 6.1% rise in sales YoY. This is despite high interest rates, rising fuel prices and an overall slowdown in economic growth that kept consumer sentiment low during 2012. M&M's exports rose by 4.2% YoY.