After opening firm the Indian indices continue to trade in the green in the morning session of trade. The sectoral indices are trading mixed with the IT index leading the indices in green; while and the Banking index is trading in the red.
The BSE-Sensex is trading up by 60 points and the NSE-Nifty is trading up 12 points. The BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.7%. The rupee is trading at 64.28 to the US dollar at the time of writing.
India's largest cigarette manufacturer ITC has announced that its board will meet on the 28th of August to consider the de-merger of the non-engineering business of its subsidiary Wimco which would then be merged with itself. ITC along with Russell Credit, a wholly owned unit, holds 98.21% of Wimco's share capital. Apart from the agriculture, forestry and matchstick businesses, Wimco has interests in manufacturing packaging machinery.
Apart from being the market leader in cigarettes, ITC has a diversified presence in cigarettes, hotels, paperboards, specialty papers, packaging, agri-business, packaged foods, confectionery, information technology, branded apparel, personal care, stationery and other FMCG products. ITC is trading down 0.2%.
This acquisition follows the earlier joint acquisition of OVL with an indirect 10% interest in the same block-Area 1 with Oil India Ltd (OIL). The 10% interest then was acquired from Videocon Mauritius Energy Limited. The block is expected to have resources of around 65 trillion cubic feet. OVL currently makes up for 15% of the ONGC's total production of 60 m tones. ONGC's domestic oil and gas fields have been facing declining supplies. Therefore, the company has been acquiring stakes in overseas assets. The stock of ONGC is trading down 3.4% today.