After opening firm, Indian Indices have given up their gains and are trading below the dotted line during the morning trading session. FMCG stocks are leading the gainers while engineering stocks are trading in the red.
The BSE-Sensex is trading down 25 points. The NSE-Nifty is trading down 8 points. The BSE Mid Cap index is trading down 1.1% and the BSE Small Cap index is trading down 1.3%. The rupee is trading at 61.02 to the US dollar.
Most of the PSU banking stocks are trading in red today with Bank of India and Vijaya bank being the leading losers in the pack. As per the financial daily, the State bank of India (SBI), are likely to put on hold the plan to merge its subsidiaries. The bank may also decide not to merge all of its five associate banks, allowing some of them to continue with the existing structure. Reportedly, the bank will have to take various regulatory approvals before going ahead with the merger which are still pending. SBI first merged its associate, State Bank of Saurashtra with itself in 2008. Two years later, it merged State Bank of Indore. Among the other five associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed entities. SBI was widely expected to merge either State Bank of Patiala or State Bank of Hyderabad. While the bank is still working on plans, before going ahead, the bank will also make assure that it follows Basel III norms. Thus one can expect, merger to take place over a period of time after SBI has taken the necessary steps for the merger to become more value adding.
FMCG stocks are trading mixed today. While Hindustan Unilever Ltd (HUL) is among the stocks leading the gainers; Kokuyo Camlin is among the stocks leading the losers. As per a leading financial daily, Pidilite Industries has acquired the adhesive business of Blue Coat Private Limited. The company has paid cash consideration of Rs 2635.7 m for the acquisition. Blue Coat is a manufacturer of industrial adhesives and textile printing chemicals. Pidilite is one of the leading manufacturers of adhesives, sealants and specialty chemicals in India. This acquisition is expected to bolster the company's product offering in the adhesive segment. Pidilite is currently trading up 0.4%.