Indian stock markets continued to trade in the positive on buying interest in heavy weights over the last two hours of trade. All the sectors are trading in the green led by consumer durables and realty.
The BSE-Sensex is up by 200 points while NSE-Nifty is trading 63 points above yesterday’s closing. Both BSE Midcap and BSE Small cap indices are up by 1.4% and 1.6% respectively. The rupee is trading at 45.20 to the US dollar.
Auto stocks are trading firm led by Escorts and TVS Motors. As per a financial newspaper, Mahindra & Mahindra has completed all formalities regarding acquisition of a majority stake in the South Korean automobile company Ssangyong. M&M has paid an amount equal to US$ 463 m for 70% stake in the automaker. Ssangyong plans to invest around 240 bn Korean Won (US$ 211 m) towards brand building and product development. M&M will help the SUV manufacturer in raising funds for these activities. Ssangyong has been dormant in the product development arena for a long time since 2006. The two companies will share product development programs and platforms for Indian and world markets in the future.
It may be recalled that, Ssangyong was under bankruptcy protection since February 2009. In November last year, M&M emerged as the preferred bidder in the bidding process that involved others like Renault, Nissan and a few private equity players. Mahindra is also planning to set up operations of Mahindra Finance in Korea to facilitate the sales of Ssangyong vehicles.
FMCG stocks are trading firm led by Henkel and Archies Limited. As per a leading financial daily, Hindustan Unilever Limited (HUL) is adopting new innovative techniques to assess the needs and behavior of customers. To achieve this, HUL is setting up 5,000 sq-feet customer innovation centre in Mumbai. This will be situated close to the company’s Mumbai centre and will be equipped with latest technology to accesses consumer behavior. These technologies would include retina scanning and radio frequency identification (RFID). This facility is expected to be up and running in the next 6 months. The objective of setting up this centre is to allow the company to analyze customer needs and amend or fine tune products according to the need of the consumer. The innovation centre is part of HUL's strategy to double its sales in India in the face of higher competition in the consumer goods space and rising input costs.