The BSE-Sensex is trading higher by 25 points and NSE-Nifty is trading flat at the moment. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.1% and 0.2% respectively. The rupee is trading at 54.26 to the US dollar.
Auto stocks are trading firm led by Tata Motors and Mahindra and Mahindra (M&M). As per a leading daily, Mahindra and Mahindra has been forced to recall around 30,000 units of its sports utility vehicle (SUV), XUV 500. These vehicles manufactured between 2011 and 2012 have some manufacturing defects in 3 parts- the fluid hose, the front power windows, and the left wiper. M&M has decided to personally contact the owners of these vehicles and replace the faulty parts. The replacements will be carried out at the auto company's cost. However, the management stated that presence of these defaults would not have caused any safety related issues but only functional problems.
Steel stocks are trading in the green led by Tayo Rolls and JSW Ispat. As per a leading daily, Steel Authority of India Limited (SAIL) is planning to invest Rs 29.5 bn towards expansion of capacity at its Gua iron ore mine. The capacity will be raised from 2.4 mtpa to 10 mtpa. We may note here that Gua mine started operations in 1919 and was a captive mine for IISCO for its Burnpur plant. Post the merger of IISCO and SAIL in 2006, it is now owned by SAIL. SAIL also plans to use some of this money to set up beneficiation and pellet plants in Jharkhand. The proposals for both capacity expansion and setting up of beneficiation and pellet plants have already been approved by the board of the company. As per the steel minister, Mr Beni Prasad Verma, the tender documents are also in the last lap of finalisation and SAIL is in the process of obtaining necessary clearances for the project.