The Indian stock market continued to trade firm due to buying interest in heavy weights over the last two hours of trade. All sectoral indices are trading in the green except for the FMCG space. Stocks from the auto, realty, consumer durable and banking are gaining the most while those from the FMCG are trading weak.
The BSE-Sensex is trading up by 278 points while NSE-Nifty is trading 89 points above yesterday's closing. BSE Midcap and BSE Small cap indices are up by 2.3% and 2.8% respectively. The rupee is trading at 45.18 to the US dollar.
Auto stocks have been trading in the green with Tata Motors, Mahindra and Mahindra (M&M, Maruti Suzuki and Escorts leading the pack of gainers. As per a leading financial daily, Mahindra & Mahindra will launch five models during the current fiscal year. The World SUV, codenamed W201, will be launched during the upcoming festive season. The current fiscal year is also expected to witness the launch of Sports Utility vehicle from its South Korean subsidy Ssangyong stable. Besides, it will be launching Reva NXR, a four seater electric car from Mahindra Reva subsidiary. The company will also launch two variants of its passenger car - Verito Fresh and a sub - four metre. The company's R&D department is working along with Ssangyong to develop platforms that will be used by both the companies. The company is also increasing its engine production capacity to meet demand, especially for its pick-ups. It plans to invest Rs 50 bn for product development and capacity expansion in the next three years. Its Mahindra Navistar commercial vehicle joint venture will launch buses in the next fiscal year.
Energy stocks have been trading mixed with Essar Oil, Mangalore Refinery and Petrochemicals (MRPL) and Chennai Petroleum leading the pack of gainers. However, Indian Oil Corporation (IOC), Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation (BPCL) are trading weak. As per a leading financial daily, ONGC is planning to sell its deepwater stakes to oil giants. It is looking for a partner with the technological expertise to exploit the country's vast but untapped deepwater oil and gas reserves. The corporation is in talks with BG, Eni and Shell to sell stakes in deepwater developments off the country's resource-rich eastern coast. The group seems to be inspired from more-than Rs 320 bn deal struck between BP and Reliance Industries. It has already been collaborating with the British, Italian and Anglo-Dutch explorers but is looking to deepen ties with foreign companies to boost the development of its 85 deepwater blocks in the Indian Ocean.