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The BSE Sensex is trading higher by 30 points and the NSE Nifty is trading lower by 5 points. The BSE Mid Cap index is trading flat while the BSE Small Cap index is trading higher by 0.4% respectively. The rupee is trading at 67.47 to the US$.
Engineering stocks are trading on an optimistic note with Thermax Ltd and Kalpataru Power leading the gains. According to a leading financial daily, Larsen & Toubro's (L&T) construction arm - L&T Constructions along with its partner, STEC of China have bagged an order worth Rs 52.7 billion from Mumbai Metro Rail Corporation (MMRC). The scope of the project includes design and construction of underground stations and associated tunnels for Package 1 and Package 7 in Line 3 of Mumbai metro project. The project is scheduled to be completed in 48 months.
L&T Constructions also recently won orders worth Rs 11.65 billion and added a prestigious high rise residential project from a leading developer in Mumbai.
Meanwhile, L&T's power transmission and distribution business bagged orders worth Rs 11.2 billion in the domestic and international markets. The work includes construction of a medium voltage overhead line which will enhance the reliability of the existing network.
L&T recently reported 18.5% YoY growth in sales while net profits grew 18.6% YoY (Subscription Required) during the fourth quarter of FY16. The company plans to emphasize on operational efficiencies, faster execution of projects and lower working capital levels in the near future.
Moving on to news from oil & gas sector. According to an article in The Economic Times, Oil India Ltd-IOC-BPCL's combine deal to acquire stake in Russia's Vankor oilfield has spoilt ONGC Videsh Ltd.'s (OVL) chance of negotiating down the price for buying additional 11% in the same field.
OVL had in September last year bought 15% stake in Russia's second biggest oilfield of Vankor for US$ 1.268 billion. In March this year, Rosneft agreed to sell another 11% to OVL. Simultaneously, it struck a deal to sell 23.9% in Vankor to a consortium of OIL, IOC and a unit of BPCL.
Going by the September 2015 agreement, OVL would have to pay about US$ 930 million for the additional stake.
After all these deals close, Indian state firms will have 49.9% stake in Vankor, entitling them to 220,000 barrels per day (11 million tons a year) of oil production. The recoverable resources of the Vankor field as of January 1 stood at 361 million tonnes of oil and condensate and 138 billion cubic meters of gas. ONGC is currently trading down by 0.9% on the BSE.
Oil & Gas sector is trading on a negative note with Oil India Ltd and Gulf Oil Lubricants leading the losses.
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