Indian stock market
indices continued to slide during the previous two hours of trade on the back of persistent selling pressure across index heavyweights. All sectoral indices are trading in the red. Stocks from the consumer durables and metal
sectors are the biggest losers.
Steel stocks are trading in the red led by Jindal Steel and Jindal SAW Ltd. As per a leading financial daily, Steel Authority of India (SAIL) is expected to sign a 50:50 joint venture (JV) agreement with Kobe Steel, a Japanese company in next 3-4 months. The JV involves setting up a 0.5 million tonne (MT) greenfield steel plant in India. The estimated investment is Rs 15 bn. It would be implemented at SAIL's alloy steel plant at Durgapur. The new unit will put into use Kobe Steel's iron-making technology to make nuggets. It will produce a special type of alloy steel which will have specific applications. This JV will help SAIL to acquire Kobe Steel's patented technology. The venture is first of its kind for the company. Currently, the company is engaged in a feasibility study about the proposed venture. Besides, the company has proposed its capacity expansion plan in West Bengal (WB) with a proposed investment of Rs 200 bn. The company expects that it would be completed by June 2012. The stock is trading in the red.
Auto stocks are trading weak led by Ashok Leyland and Tata Motors. As per a leading financial daily, Carl-Peter Forster, the group Chief Executive Officer (CEO) of Tata Motors has resigned after serving just 18 months at the company. As per the company management, the resignation was on account of unavoidable personal circumstances. Investors seem to have reacted negatively to this development. The company had posted flat profit in 1QFY12 on account of high costs and finance charges.