Indian stock markets traded in the positive during last two hours of trade on buying in index heavyweights. Barring FMCG and banking stocks, all sectoral indices traded in the green.
The BSE-Sensex is trading up by 126 points and NSE-Nifty is trading strong by 36 points. BSE Mid cap and BSE Small cap indices are trading strong by 1% and 1.5% respectively. The rupee is trading at 49.68 to the US dollar.
Mining stocks are trading strong led by Sesa Goa and Gujarat NRE Coke. As per a leading daily, Coal India is likely to announce the new set of coal prices soon. The coal company has been asked to revise the coal pricing mechanism and bring in into effect by January 31, 2012. Earlier Coal India was thinking of revising the pricing from March. It may be noted that the ministry has taken this step to prevent any major impact from the earlier pricing regime. Also, the acting chairman Mr N C Jha would retire from his services on January 31, 2012. As per him, since the change from Useful Heat Value (UHV) concept to Gross Calorific Value (GCV) happened during his regime, he would want to address the price issue before he retires.
Hotel stocks are trading strong led EIH Limited and Hotel Leela Venture. Indian Hotel Company Limited (IHCL) has announced results for the quarter ended December 2011. The company has reported a 7.4% YoY and 0.5% YoY growth in sales and net profits respectively. Growth remained more or less flat on account of weaker domestic demand and high interest costs that affected the hospitality sector in India. Operating profits for 3QFY12 also declined due to higher expenditure which grew by 11.6% YoY. Both operating and net profit margin declined by 2.7% and 0.7% respectively. For nine months ended December 2011, net sales grew by 9.3% YoY and net profits grew by 69.5% YoY.