After opening firm, the Indian Indices are trading above the dotted line in the morning session. The buying interest is highest energy and metal stocks. Apart from FMCG, all sectoral indices are trading in the green.
The BSE Sensex is trading up 88 points and the NSE-Nifty is trading up 28 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 0.9%. The rupee is trading at 61.40 to the US dollar.
Steel stocks are trading mixed today. While Tayo Rolls is leading the gainers; Tata Sponge is leading the losses. India's second largest steel firm, Steel Authority of India (SAIL), is looking to buy coal assets in Poland. Coal is a leading input material in steel production and most India steel producers depend on imported coal. SAIL has been leading a consortium of state controlled steel firms, since 2009, to acquire coal mines abroad. SAIL is currently in the process of doing due diligence for the coal mines in Poland. SAIL is trading up 2% today.
PSU banking stocks are trading mixed today. While Indian Bank is leading the gainers; Allahabad Bank is leading the losses. According to news reports, several PSU banks are postponing their capital raising plans. The reasons being cited are the poor performance of banking stocks. However their plans have also been affected due to the upcoming general elections. Dena Bank and Union Bank are two banks which have plans of raising funds via Qualified Institutional Placements (QIPs) but have delayed the same citing poor market conditions. The banks are also jittery of doing a QIP now due to the fiasco of the State Bank of India (SBI) QIP in January, which had to be nearly bailed out by LIC.