The benchmark indices in the Indian stock market continued to trade in the green for the last two hours of trade. Stocks from Software, Auto and Consumer Durables are trading firm, while those from Realty and Capital Goods space are trading firm.
The BSE-Sensex is up by 92 points while NSE-Nifty is trading 34 points above the dotted line. BSE Midcap and BSE Small cap indices are trading up by 0.6% and 0.8% respectively. The rupee is trading at 44.38 to the US dollar.
Private banking stocks are trading mixed with ING VYSYA Bank and Kotak Bank leading the pack of gainers. The stocks of Federal Bank and Development Credit Bank are trading in the red. In the banking space, Yes Bank has announced its results for 4QFY11. The bank has earned a net income of Rs 2 bn for the last quarter, up 45% YoY. Its net interest income (NII) came at Rs 3.5 bn, up 43% YoY and net interest margins were at 2.8%. In a separate development, Yes Bank has revived its plans to foray into securities broking. Its subsidiary, Yes Direct, would offer internet broking services to its retail customers. It plans to start operations in the current financial year itself. The bank had set up the same plan few years back but withdrew its proposal due to lack of scale. The plans are reactivated now since the management feels it has achieved the right scale and mass.
Most of the Energy stocks are trading in the green with ONGC and HPCL leading the pack of gainers. However, Petronet LNG is trading weak. As per a leading financial daily, Vedanta Plc (the UK-listed mining group) bought an 11 per cent stake worth about US$ 1.5 bn in Cairn India through block deals in the market. Vedanta is seeking to buy a controlling stake in Cairn India for US$ 9.6 bn. Cairn India owns strategically important oilfields in Rajasthan. This deal was announced last year and has been delayed due to controversy on royalty issue. However, the company has obtained regulator's approval to launch its open offer. Vedanta may acquire up to 70.4% in Cairn India. The stock of Cairn India is trading in the green.