Indian equity markets continues to trade strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. Realty and capital goods stocks witnessed maximum buying interest while IT and FMCG stocks witnessed maximum selling pressure.
Banking stocks are currently trading in the green with Union Bank, Canara Bank and Bank of India leading the gains in the sector. The country's largest bank, State Bank of India (SBI) may receive a capital boost from the Finance Ministry. The Ministry is in the process of looking at a proposal to infuse Rs 40 bn in the bank to boost its capital base. The decision would be made within the next few months. Last year, the government had infused Rs 79 bn in SBI to increase its Tier-1 capital. With that, the government's stake in SBI had gone up to 61.58% (as at end of March 2012) from 59.4%. The Finance Ministry had earlier announced that it would induce up to Rs 155 bn in public sector banks in order to enhance their financial strength. Last year (FY12) it had injected Rs 120 bn in PSU banks for increasing their capital adequacy ratio.
Food stocks are trading strong led by Wadala Commodities and Lakshmi Energy. According to a leading financial daily, ITC has commissioned a new hotel in India, ITC Grand Chola. This is the group's eighth property in India and is being touted as the largest so far by the group. Built with an investment of over Rs 12 bn, it is a 600 room hotel spread across 1.5 million sq ft in Chennai. The hotel consists 100,000 sq ft of banqueting and convention space, 30,000 square foot of pillar-less ballroom, besides 10 food and beverage outlets. It is inspired by the legacy of Chola dynasty, and has conference halls and rooms in the name of Rajendra Cholan and Raja Cholan.