The Indian markets have started today's session on a positive note. The benchmark indices opened at the breakeven mark but soon darted into the positive. They have managed to hold on to their gains since then. Other key Asian markets are trading strong with Singapore (up 0.7%) leading the pack. The US markets closed higher by 0.5% yesterday.
Currently in India, heavyweights from the BSE-Sensex are trading strong with banking and auto majors finding investors' favour. The BSE-Sensex is trading higher by around 80 points, while the NSE-Nifty is up by about 25 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 1% and 1.3% respectively. The rupee is trading at 44.63 to the US dollar.
Energy stocks have opened the day on a positive note. Gainers here include Gujarat Gas and Indraprastha Gas. As per a leading business daily, Reliance Industries has discovered oil in an onshore block in the Cambay basin, Gujarat. The block covers an area of 635 square km. The discovery has been dubbed 'Dhirubhai-47'. It has been notified to the Director General of Hydrocarbons and the size of the discovery is currently being studied. This discovery is significant because it indicates the presence of more oil pool areas. This is the company's fourth oil discovery in the region, the first being in November 2009. It may be noted that production of oil onshore is generally cheaper than offshore. The technical difficulties and the equipment required for handling sea conditions make the process more expensive. Besides Reliance Industries, Gujarat State Petroleum Corporation in also present in the Cambay basin and holds interests in 15 producing fields.
FMCG stocks have opened the day on a positive note. Gainers here include Paper products and Dabur. Dabur announced its FY10 results yesterday. The company's consolidated net sales for 4QFY10 grew by 17% YoY on the back of strong performance by its domestic business and the amalgamation of the financials of Fem Care. Key categories such as hair care, oral care, skin care, health supplements and digestives registered healthy growth. Operating margins improved by 1.8% to 20% for 4QFY10. This increase comes on the back of lower raw material costs and other expenditure as a percentage of sales. However, growth of operating profit was capped due to higher advertisement expenditure and higher staff costs as a percentage of sales. Net profit for 4QFY10 grew by 30% YoY.