After opening firm, Indian equity markets continued to trade on a positive note during the last two hours of trade. Most stocks across sectors are trading on a positive note. Stocks from the realty and healthcare sector are the biggest winners, while Power and Oil & Gas stocks witnessed maximum selling pressure.
Barring Tayo Rolls, majority of the steel stocks are trading in the green. SAIL and Tata Steel are the leading gainers. According to a leading financial daily, Tata Steel, Europe's second largest steel producer, has reached an agreement to acquire three service centers in Sweden, Finland and Norway from its rival SSAB. Tata Steel has decided to buy strip product service centers in Sweden and Finland. Whereas, in Norway, Tata Steel already owns 50% in the service center and is now buying the remaining stake held by SSAB in the venture. The three centers process strip products, offering services such as cutting-to-length, slitting and recoiling. They supply steel to manufacturers in the automotive, construction and electrical supplies industries as well as to heavy and light engineering companies. Tata Steel has inched higher by 0.8% on the BSE.
According to a leading financial daily, ONGC and other state-run employers may have to pay about Rs 109 bn in fuel subsidy. Reportedly, the Finance Ministry has agreed to pay less than one-third or Rs 50 bn by way of cash subsidy out of the Rs 159 bn of revenue losses fuel retailers incurred on selling LPG and kerosene at government-controlled rates in October-December. In the first half of current fiscal, fuel retailers IOC, BPCL and HPCL had together lost Rs 511 bn in revenue on selling fuel below cost. ONGC's cost of production is around US$ 40 per barrel. Stocks from the Oil & Gas sector are trading on a negative note with GAIL, ONGC, Oil India and IOC all leading the losses.