With an increase in buying activity at lower levels, the markets have managed to recoup some lost ground in the last two hours of trading. Currently, stocks from the auto, software and energy sectors are dragging the indices lower, while stocks from the FMCG, realty and power sectors are trading higher.
The BSE-Sensex is trading higher by 11 points while the NSE-Nifty is trading marginally lower by 6 points. The BSE-Midcap and BSE-Smallcap indices are trading higher by 0.5% and 0.57% respectively. The rupee is trading at 44.49 to the dollar.
As per a leading business daily, healthcare equipment manufacturer Opto Circuits has acquired Kolkata-based N.S. Remedies Ltd for US$ 1.50 m in an all cash deal. The acquisition will enhance the company's manufacturing capacity and at the same time is also expected to significantly reduce its cost of manufacturing by 23% to 25%. Also, the company's cost of outsourcing will come down as N.S. Remedies has an advanced facility for stent manufacturing and research & development. Earlier Opto Circuits used to outsource the manufacturing to Germany. Thus, the move is in line with the company’s plan to have its own manufacturing base. The stock of Opto Circuits is trading higher currently.
Engineering and construction major L&T has received a large order worth Rs 10.6 bn from Gujarat State Petroleum Corporation (GSPC) to build an offshore oil platform. The order has been awarded to L&T to help accelerate the production of first 'oil/gas' by 2012 from the technically challenging KG Basin. Upon final commissioning, the facilities will add about 6 m standard cubic metres of hydrocarbon gas per day to India's energy production.
L&T will be responsible for the survey, engineering, procurement, fabrication and installation of the wellhead platform. It may be noted that L&T has been providing services to the upstream hydrocarbon sector since the early 90s and has also executed several demanding offshore projects for ONGC and international clients. This contract affirms L&Ts reputation and capabilities as a reliable source to execute critical projects for oil companies. To execute the project L&T will leverage its upcoming manufacturing facilities at Kattupalli near Ennore and L&T Valdel engineering office in Chennai. The stock along with its peers, BHEL and Punj Lloyd, is trading higher currently.