Indian markets continued to zoom ahead on account of persistent buying among the index heavyweights during the previous two hours of trading session. Stocks from capital goods and power sectors are leading the gainers, while consumer durables stocks are trading weak.
The BSE Sensex is trading up by 414 points and the NSE-Nifty is trading up by 112 points. The BSE Mid Cap is trading up 0.7% and the BSE Small Cap index is trading up 0.8% today. The rupee is trading at 58.58 to the US dollar.
Energy stocks are trading mixed. Cairn India and ONGC are leading the stock of gainers, while Chennai Petroleum is trading weak. As per a leading business daily, Cairn India is seeking extension of its prolific, Rajasthan oil fields from government and state own firm ONGC as current term of the block will end in 2020. In the absence of extension the fields may be returned to ONGC once cost is recovered, as per the Rajasthan production sharing contract (PSC). It may be noted that ONGC is licensee for the assets and pays royalty not just for its 30% stake but also for Cairn's 70% interest. The assets include three oil fields and a heated pipeline that carries crude from oil fields to refineries in Gujarat. Cairn earlier resorted to extension till 2040, the economic life of the assets, but later sought for 10 years till 2030. However, the Rajasthan PSC provides 5 years extension after 2020. As per the sources, ONGC might not agree to extension as it would than own 100% of the assets.
Indian Pharma stocks are trading mixed today. While Dishman Pharma is leading stock of gainers, Divi's Laboratories and Strides Arcolab are trading weak. As per a leading business daily, Sun Pharma received some relief after Andhra Pradesh high court has removed stay on its acquisition of Ranbaxy. The court had put stay on the deal as it was reviewing allegation of insider trading by a group of investors seeking probe. At US$ 4 bn, the merger is considered to be largest in the Indian pharma and will create Sun Pharma as the world's 4th largest drug maker. However, both firms are facing import bans on their plants by drug regulator, US FDA for marketing their drug in the US. Both, Sun Pharma and Ranbaxy are trading higher by 1.5% each.