Markets continue to trade firm

Mon, 10 Oct 01:30 pm

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The Indian stock market continued to trade firm on account of strong buying interest in heavyweights. All sectoral indices are trading in the green. Stocks from the realty, oil & gas, software, consumer durables and auto sectors are leading the pack of gainers.

The BSE-Sensex is trading up by 208 points while NSE-Nifty is trading 74 points above Friday's closing. The BSE Mid Cap and BSE Small Cap indices are trading up by 0.9% and 0.7% respectively. The rupee is trading at 49.05 to the US dollar.

Auto stocks have been trading mixed with Tata Motors, Escorts Ltd, Tube Investments and Bajaj Auto leading the pack of gainers. However, Maruti Suzuki India and Maharashtra Scooters are trading weak. As per a leading financial daily, Maruti Suzuki India has started taking actions against the employees involved in strike and violence at its Manesar plant, Haryana. The management of the company have dismissed ten workers and terminated five trainees. They also suspended ten employees. According to the management of the company, this strike is a complete violation of the agreement signed by the workers with the company in the presence of Haryana government officials on 1st Oct, 2011.

The management of the company is concerned about the safety of plant and machinery as well as those employees who are against the strike. So far, the company has rescued around 450 such employees with the help of police. These employees were held by the striking workers. The workers which include regular, contractual, apprentices and trainees are again on strike demanding casual workers and another 44 permanent employees who were suspended during the earlier 33-day-long standoff be reinstated.

Energy stocks have been trading mixed as well with Castrol India, Essar Oil and Reliance Industries Ltd (RIL) leading the pack of gainers. However, Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) are trading weak. As per a leading financial daily, RIL is in the process of acquiring games, entertainment and children's content of UTV Software. The company is all set to ink a deal with the India unit of Walt Disney in this regards. Disney controls 50.44% in UTV Software.

RIL is diversifying its business into telecom, retail, financial services and hospitality sectors in recent years. The core business of the company is oil and gas refining and exploration. Last year, the company had acquired a telecom company, Infotel. Recently it has signed a deal to acquire the insurance business of Bharti Axa. The company is diversifying its business in the light of falling gas output.