The Sensex today is up by around 37 points (0.2%), while the NSE-Nifty is up by around 9 points (0.2%). While the BSE Mid Cap index is lower by 0.1%, the BSE Small Cap index up by around 0.1%. The rupee is trading at Rs 53.96 to the US dollar.
Textile stocks have opened the day on a firm note with SRF Ltd and Welspun India leading the gains. As per a leading financial daily, Ahmedabad-based Arvind Ltd which has businesses in textiles, brands, retail, telecom, engineering and real estate, is expected to clock revenues of Rs 53 bn during the current financial year (FY13). It is said that Arvind Brands, the apparel retail and licensing business of the company, is set to play an important role in the next leg of growth. This business alone is likely to garner sales of about Rs 50 bn by 2018. Of this, about Rs 20 bn is expected to come via the inorganic route. The company is looking for acquisitions, both domestic and international. It is also setting up new capacity in Ahmedabad to increase production of textiles and yarns. It must be noted that in the last quarter, the textile business reported a growth of 15%. As far as the company's real estate business is concerned, the company is currently working on 10 projects. Of these, three are in Bangalore and seven in Ahmedabad. It expects this segment to contribute about Rs 3 bn to the topline in the next fiscal.
Mining stocks have opened the day on a firm note with MMTC Ltd, Ashapura Minechem Ltd and Coal India Ltd (CIL) leading the gains. As per a leading financial daily, if the government clears railway projects and the Cabinet Committee on Investment (CCI) gives the go-ahead to the proposals to develop mines, leading mining giant CIL could increase its coal output by 73% from the current levels over the next five years. This would result in the addition of 337 m tonnes to the existing output. It is said that production of about 300 m tonnes of coal has been held up on account of delays in laying 590 km of tracks by the railways. Moreover, 12 proposals to develop mines that have been stranded because of long delays in green clearances have been recommended to the CCI by the coal ministry. These projects would entail an investment of Rs 13,476.3 m and would produce 36.97 m tonnes per year, including 7 mt in the financial year 2013-14. The company's Chairman Mr S Narsing Rao has stated that mining firm is coming out from the extended period stagnation. With the improved availability of wagons, he expects coal supply to increase by 8.5% this year.