After a flat opening, Indian stock markets gained momentum in the last two trading hours on the back of sustained buying in heavyweights. Majority of the sectoral indices are trading positive with Auto, Pharma and IT stocks being the biggest gainers. Realty, power and capital good stocks were the only losers.
Most of the cement stocks are trading negative with Madras Cement and Mangalam Cement being the biggest losers. As per a leading financial daily, UltraTech Cement is in talks to buy a limestone mine in Mozambique for Rs 15 bn. Reportedly, the company is likely to build a 1-2 m tonne cement plant in the African nation to capitalize on the rising demand. The company, had in April 2010, acquired Dubai-based ETA Star Cement having 2.3 m tonne capacity for Rs 17 bn. UltraTech Cement stock is up 0.3%.
Majority of the engineering stocks are trading positive with Honeywell Automation and Finolex Cables trading the strongest. As per a leading financial daily, Punj Lloyd has won a contract from Horizon Terminals, a subsidiary of Emirates National Oil Company. The contract comprises building a 60 km jet fuel pipeline to the Dubai International Airport and seting-up of oil terminal facilities with storage tank having capacity of 1.41 lakh cubic meters inside the Jebel Ali Free Zone. This is a positive for the company and will add on to its order book, although execution of the same will be the key. Punj Lloyd stock is up 1.2%.