After starting today’s session on a positive note in the morning, the Indian indices have shed some early gains but are trading in the green. Other key Asian markets are trading in the positive territory as well with Nikkei (up 1.5%) leading the pack of gainers. Currently, heavyweights in the Sensex are trading positive with stocks from the realty and metals space witnessing strong buying interest. However, stocks from IT and FMCG space are trading flat.
Currently, the BSE-Sensex is trading up by around 108 points, while the NSE-Nifty is up by about 31 points. Strong buying interest is being witnessed amongst the mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading up by 0.8% and 0.9% respectively. The rupee is trading at 46.83 to the US dollar.
Metal stocks are trading positive with Tata Steel and Hindalco leading the gains. Tata Steel’s European arm Corus struck a deal with Thailand-based Sahaviriya Steel Industries (SSI). This deal involves selling the company’s Teesside Cast Products (TCP) plant in the UK. The size of the deal is expected to be US$ 500 m. The assets to be sold include Redcar and South Bank coke ovens, TCP’s power generation facilities and sinter plant, the Redcar Blast Furnace and the Lackenby steelmaking facilities. Including TCP’S production, Tata Steel Europe’s total steelmaking capacity stood at 20 m tonne per annum (mtpa). Post the sale, it will fall to 17 mtpa.
The sale agreement would also result in Corus and SSI operating Redcar Wharf (TCP's bulk terminal) as a joint venture. This would give Corus the flexibility to use Teesside to serve its other steelmaking operations, while also meeting SSI's requirements on Teesside.
Telecom stocks are trading strong with Bharti Airtel and MTNL leading the gains. As per leading news daily, Reliance Communications (RCom) is planning to rope in strategic partners for its infrastructure and technology innovation unit for its 3G mobile business. The company is in discussion with global players like Motorola, HP, Intel and Sony. RCom needs partners in its 3G innovation lab which has been set up as an end-to-end wireless network infrastructure and new technology provider for high-speed 3G services. RCom also plans to let out the services of the lab to other operators as well so as to further monetize its investments in the newly set up unit. Money raised via renting out these services could help RCom in expansion of its 3G services It should be noted that the company paid `85 bn for securing the 3G spectrum airwaves and would require further `50 bn to roll out the services.