The Indian stock market indices continued to trade in the green in the last two hours of trade. Stocks from the Oil & Gas, FMCG and software sectors are trading firm, while those from the realty and power space are trading weak.
Engineering stocks are trading mixed with Jain Irrigation Systems, Voltas, Ashok Leyland and Manugraph Industries leading the pack of losers. However, Elecon Engineering and Emco Ltd are trading firm. As per a leading financial daily, Larsen & Toubro (L&T) has won the offshore process platform contract from Gujarat State Petroleum Corporation (GSPC). The contract is valued at Rs.14.5 bn (US$ 317.5 m).It has been provided under international competitive bidding to meet GSPC's target of production of hydrocarbon by July 2013 from KG Basin (off the East Coast of India).
L&T has been serving the upstream hydrocarbon sector since early '90s and has successfully executed several challenging and significant projects for domestic and international clients. The recent contract follows a previous contract received by L&T from GSPC. Last year, L&T received GSPC's first offshore wellhead platform contract for the development of Deen Dayal West Field in KG Basin. L&T has already delivered the superstructure of the offshore platform from its newest manufacturing facilities at Kattupalli near Ennore within a year of starting operations. Upon final commissioning, the facilities will add about 6 million standard cubic metres (mscm) of hydrocarbon gas per day to India's energy production. However, the stock of the company is trading in the red.
Software stocks are trading mixed as well with NIIT Ltd, TCS and HCL Infosys leading the pack of gainers. However, Patni Computer systems and Moser Baer (India) are trading weak. As per a leading financial daily, Wipro is all set to announce the setting up of a defence equipment manufacturing plant in Karnataka through its arm Wipro Infra Engineering. Mr. Kumar, the president of Wipro infra engineering has said that the company intends to grow revenues from the aviation vertical to 25% of infra engineering revenues over the next 4-5 years. It will start with the allotment of 7 acres of land for aviation SEZ in Bangalore. With an investment of US$ 8-10 m, the SEZ is expected to roll by the end of the first quarter. The manufacturing is expected begin in 12-18 months.
The company is looking at announcing a partnership with leading aviation players. It is already the world's third largest manufacturer of hydraulic cylinders. However, so far, India has accounted for 56% of its total sales volumes. It now has its eyes on North America and Brazil. The company expects an expense of US$ 100 m over the next 2-3 years, mainly to ramp up production at its 3 manufacturing facilities in India. The company is also set to shift focus on capacity expansion in China. However, the stock of the company is trading in the red.