Indian stock market indices have been trading firm over the last two hours of trade on the back of buying interest in index heavyweights. All sectoral indices are trading in the positive led by Metal and Banking stocks.
The BSE-Sensex is trading up by 465 points and NSE-Nifty is trading up by 145 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 1.9% and 1.8% respectively. The rupee is trading at 49.09 to the US dollar.
Textile stocks are trading firm led by Bombay Dyeing and Raymond. According to a leading financial daily, Arvind Ltd is planning to set up 240 exclusive brand outlets by 2013-14. With this, the company expects to clock in revenues of Rs 4 bn. The company intends to set up these brand outlets in three formats- flagship stores in 2,500 sq ft; experience stores occupying less than 2,500 sq ft and exclusive stores covering less than 900 sq ft. As per the company, experience stores will contribute maximum revenues for the textile company. These experience stores would be set up in tier 2, 3 and 4 cities and towns of India.
Steel stocks are trading strong. All stocks in the sectoral index are trading in the green. Jindal Steel and Power Ltd (JSPL) and SAIL are the biggest gainers. According to a leading financial daily, Steel Authority of India (SAIL) will soon be allotted an iron ore lease in Karnataka's Bellary district for its Visvesvaraya Iron and Steel Ltd (VISL) plant. The iron ore mine is located in the North East Block range in Sandur and is estimated to have 11 m tonnes of iron ore. The granting of lease would end SAIL's seven year wait for a captive mine. Currently, VISL sources its raw material from NMDC which is not sufficient to meet its requirement and getting supplies from SAIL's mines in Jharkhand, more than 2,500 km away, is also not a viable option as freight cost alone is too high. SAIL wants to expand the capacity at VISL but will do so only after the allocation of mine.