Indian stock markets continued to trade on a higher note during the previous two hours of trade led by continuous buying activity among the index heavyweights. Small cap stocks led the gainers. Among the sectoral indices, barring metals, almost all are trading on a firm note. Software stocks are leading the pack of gainers.
The BSE-Sensex is trading up by 175 points and the NSE-Nifty is trading up by 45 points. The BSE Mid Cap index is trading higher 0.4% and the BSE Small Cap index is trading higher 0.7% today. The rupee is trading at 60.43 to the US dollar.
Energy stocks are trading on a mixed note. While Chennai Petroleum and ONGC are leading the pack of gainers, Castrol India and Gail are trading in the red. As per a leading business daily, Gail is planning Rs 100 bn pipeline project which will enable CNG and PNG services in Varanasi and other 16 eastern cities. The project will involve laying of 2,050 km pipeline which will connect Jagdishpur in UP and West Bengal along with various interconnecting cities in the midway. Gail already has its main pipeline connecting Gujarat to UP via Madhya Pradesh. The proposed new pipeline will extend its reach forming West-East national gas grid. Besides CNG & PNG based transport vehicles, the new pipeline will help revive the sick and defunct fertilizer plants in the region through gas supply which is a cheaper feedstock than naphtha. It will also help in providing gas supply to refineries, steel and power plants in the region.
Most of the automobile stocks are trading in the green led by Maharashtra Scooters and Maruti Suzuki. As per a leading financial daily, Bajaj Auto has said that it will continue to remain focused on the motorcycle segment with brand strategy revolving around its two brands Discover and Pulsar. The sales of the company's Discover range of motor cycle have been hit due to higher competition from Honda Motorcycle and Scooter India and Hero Motocorp. As per Society of India Automobile Manufacturers (SIAM), Bajaj Auto's sales for the period April-July 2014 fell by 15% YoY to 6.15 lakh units and its market share has fallen from 21.7% to 16.9% in the same period. The company does not want to enter the scooter segment that has been witnessing brisk volume growth in the past few years. As per Bajaj Auto, it does not want to spread itself thin by re-entering the scooter market that is non-lucrative but instead wants to focus on expanding presence in the overseas markets. Bajaj Auto stock is currently trading down by 0.3%.