The BSE-Sensex is trading lower by 58 points and NSE-Nifty is trading down by 24 points. BSE Mid Cap and BSE Small Cap indices are trading down by 0.3% and 0.9% respectively. The rupee is trading at 53.92 to the US dollar.
Mining stocks are trading in the red led by Ashapura Minechem and Minerals and Metals Trading Corporation (MMTC). According to a leading daily, Coal India is prepared to meet its supply target even though it will miss its production target this year by up to 6 m tonnes. The company will be able to supply the required 470 m tonnes by drawing on its stocks. We may note here that Coal India has a stockpile of 47 m tonnes at present. The coal miner had a production target of 464 m tonnes for current year. It has failed to keep pace with the capacity growth in the power sector which uses coal for power generation. Coal India recently announced results for quarter ended December 2012 and reported 13% YoY growth in sales and 9% YoY growth in net profits.
Automobile stocks are trading weak led by Force Motors and Bajaj Auto. As per a leading daily, Mahindra & Mahindra (M&M) is looking at investing 80 bn Korean Won (about US$ 73.7 m) in its Korean arm, Ssangyong Motor Co. The board of Ssangyong approved of a third party allotment (a preferential offer) of 14,545,455 equity shares at an issue price price of 5,500 Korean Won. This offer would result in M&M's stake in Ssangyong to rise to 72.85% from the current 69.63%. As per the management, this move is in line with M&M's objective of assisting Ssangyong in achieving a turnaround faster. Also, this would help increase M&M's global competitiveness.