The BSE-Sensex is trading higher by 194 points and NSE-Nifty is trading up by 6 points. BSE Mid cap and BSE Small cap indices are trading firm by 0.6% and 0.3% respectively. The rupee is trading at 55.89 to the US dollar.
Auto stocks are trading in the green led by Ashok Leyland and TVS Motors. According to a leading financial daily, Maruti Suzuki recently approved a proposal to merge group unit Suzuki Powertrain India Limited with itself. Suzuki Powertrain supplies diesel engines and transmissions to Maruti. Post the merger, Suzuki Motor Corp's stake in Maruti Suzuki will go up from 54.2% to 56.2%. The merger will be by way of a share swap deal. This move will bring together all diesel engine manufacturing facilities of Maruti under a single management. Maruti's management will take all decisions regarding sourcing, localization, production planning, manufacturing flexibility and cost reduction.
Steel stocks are trading in the green led by Jindal Steel and Tata Sponge. According to a leading financial daily, Tata Steel, who is the anchor tenant for the industrial park being developed on 3,500 acres of land at Gopalpur, has sought extension of the in-principle approval granted for the park, which is set to be notified as a Special Economic Zone (SEZ). The registration of land lease for the Gopalpur industrial park is yet to be done and in the absence of registration, application cannot be made to the Union ministry of commerce for notification of the park as an SEZ. The steel maker has lined up two projects at the Gopalpur industrial park. One is a 50,000 tonne per annum ferroalloys plant and 0.4 million tonne per annum bar mill. The company would invest Rs 10 bn on these two projects which would initially create employment for 1,000 people.