The BSE-Sensex is trading lower by 11 points and NSE-Nifty is trading down by 4 points. However, BSE Mid Cap and BSE Small Cap indices are trading up by 0.2% and 0.6% respectively. The rupee is trading at 53.77 to the US dollar.
Most of the mining stocks are trading firm led by Manganese Ore India Limited (MOIL) and Ashapura Minechem. According to a leading daily, Coal India (CIL) has decided upon a production target of 492 m tonnes for FY13-14. This implies a targeted growth of 6% in output. For FY13, the coal company is looking at supplying 464 m tonnes of coal and is well poised to meet its target. However, it will depend on the production in last 2 months. We may note that CIL produces about 80% of India's coal and in the wake of shortage of fuel supply, it is under pressure to raise output. However, CIL has been facing its own problems in the form of availing environmental and regulatory approvals. Resultantly, the growth in output levels has remained nearly flat for the past two years and it missed its production target last year.
Automobile stocks are trading firm with TVS Motors and Hero MotoCorp being the top gainers. As per a leading daily, Ashok Leyland is looking at selling stake in some of its subsidiaries to raise Rs 5 bn. The company is aiming to use these proceeds for paying off debt to the tune of Rs 35 bn. These subsidiaries include Hinduja Leyland Finance Limited (HLFL), Albonair GmbH, Defiance Technologies and Defiance Testing & Engineering. It is also looking at offloading stake in IndusInd Bank. It may divest its stake either partially or fully in the companies. The automobile company will be carrying out these activities over the next 1 year and would start once the merger of two of its associate companies, Ashley Holdings and Ashley Investments, with Ashok Leyland are completed.