Indian equity markets have been flat in the previous two hours of trade. The most noticeable upward movements have been witnessed in the FMCG and consumer durables sectors while realty and oil and gas have faced the maximum selling pressures.
Engineering shares are trading on a mixed note with Finolex Cables and Crompton Greaves leading the gains while AIA Engineering and EMCO Ltd are witnessing the maximum selling pressures. According to a leading news daily, L& T Finance Holdings, the financial services arm of L&T, would buy out a Future Group company, Pantaloons majority holding in the general insurance JV with Generali Group of Italy for around Rs 5.5 bn. The deal values Future Generali India Insurance Company at around Rs 11 bn. Pantaloon Retail would be exiting the venture by selling 50 per cent stake through direct and indirect transfer to L&T Finance. Currently Future Group holds 74 per cent stake in the Future Generali India Insurance Company, while the remaining 26 per cent is with Italy-based Generali Group. The insurance firm would be merged with L&T's wholly owned subsidiary, L&T General Insurance once the transaction is complete. L&T's share is trading down by 1%.
Steel sector shares are trading on a mixed note with Adhunik Metaliks and Jindal Saw leading the pack, while Tata Steel and Tayo Rolls are facing the maximum selling pressures. According to a leading financial daily, a Parliamentary Panel has recommended the merger of state-owned steel companies, Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL). The Committee on Public Undertakings, a body of Lok Sabha members has reiterated its proposal stating that the move would help the two companies to acquire global scale and bring down costs of production. SAIL, one of the largest domestic steel companies currently has a capacity to produce 14.6 million tonnes per annum (mtpa). It has embarked on a capacity expansion to take it to 26.2 mtpa. Vizag-based RINL currently has a capacity of 2.9 mtpa, which is expected to go up to 6.3 mtpa in the next fiscal. SAIL's share is trading down by 0.40%.