Indian Indices have shed some of their early gains during the previous two hours of trade but are still trading above the dotted line. Majority of the sectoral indices are trading on a positive note today with realty and FMCG stocks leading the pack of gainers. Banking, healthcare and consumer durables witnessed maximum selling pressure.
Majority of the automobile stocks are trading in the green. Tata Motors and Mahindra and Mahindra are the leading gainers. According to a leading financial daily, auto major Mahindra & Mahindra (M&M) has announced that it will make a new investment of Rs 40 bn in Tamil Nadu for setting up automotive and testing facilities at Cheyyar near Chennai. The company will make the investment in two phases over a period of 7 years. The company has identified 250 acres of land at Cheyyar and the government has agreed to allot the same. In the first phase, the company will set up a vehicle testing facility to test all its models in future. The company is now testing all its vehicles abroad before commercially launched. In the second phase, the company would set up a flexible automotive plant, which will make both passenger and commercial vehicles.
Barring HDFC and IDBI Bank, banking stocks are trading in the red. Axis Bank and Yes Bank witnessed maximum selling activity. According to a leading financial daily, Yes Bank has stated that it will enter into mutual fund business next fiscal through organic or inorganic way. Reportedly, Rs 500 m is allocated by the bank for the business. According to the company's CEO, the asset management company will also complement the bank's retail strategy and help in leveraging existing infrastructure to provide necessary retail drive. Meanwhile, Yes Bank has decided to fund Rs 200-250 bn on renewable energy projects over a period of 5 years.