The Indian markets have started today's session on a positive note. The benchmark indices opened below the breakeven mark but soon moved into the green. They have managed to hold on to their gains since then. Other key Asian markets are in the green with Indonesia (up 1.1%) leading the pack of gainers. The US markets closed higher by 1.3% yesterday.
Currently in India, heavyweights from the BSE-Sensex are trading strong with construction and auto majors finding investors' interest. The BSE-Sensex is trading higher by around 55 points, while the NSE-Nifty is up by about 10 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 0.5% and 0.9% respectively. The rupee is trading at 44.49 to the US dollar.
Steel stocks have opened the day on a positive note. Gainers here include Sesa Goa and Tata Steel. As per a leading business daily, SAIL plans to set up a port in Orissa to cater to its upcoming steel capacity in the region. The proposed port will have a capacity of handling 20 m tonnes of cargo. The location has not been finalised although there are 13 spots already identified in the state's 480 km coastline. It may be noted that SAIL is executing Rs 700 bn expansion programme to raise its installed production capacity from 14.6 m tonnes per annum (mtpa) to 23.5 mtpa. In fact, the government has approved a follow-on offer to the public to help raise capital for the company. Hence, it doesn't come as a surprise that the steel giant is looking at dedicated infrastructure like ports to handle both inbound as well as outbound logistics.
Engineering stocks have also opened the day on a positive note. Gainers here include Thermax and Suzlon. KSB Pumps announced its 1QCY10 results. The company has reported a topline growth of 2.5% YoY during the quarter. The growth has been driven by pumps segment sales. This division accounts for 80% of the sales and has reported nearly 7% YoY growth in revenues. On the other hand, revenues from the valves segment declined by 16% YoY. However, costs grew at a faster pace, resulting in 8.3% YoY fall in operating profits. The company has been able to lower its finance charges substantially. The tax outgo was also lower in 1QCY10. Despite this, net profits declined by 13% YoY due to lower operating margins and higher depreciation charges.