Sensex closes on a flat note

Thu, 10 Oct Closing

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Amidst much volatility in the afternoon trading session, Indian equity markets closed on a flat note today. Ahead of the earnings season that kick-starts with Infosys and the political cliffs in the United States, equity markets remained choppy for the major part of the day. Except oil and gas, FMCG and banking, all the other sectors closed the day in green today. Stocks from the Automobiles, Metals and healthcare pack were in favor today. The BSE-Sensex closed higher by 24 points and the NSE-Nifty was up by 14 points. Also, the BSE Mid Cap and the BSE Small Cap closed the day on a positive note and were up by 0.7% and 0.6% respectively.

As regards global markets, European markets opened on a firm note, while Asian indices were trading mixed. The rupee was trading at Rs 62.04 to the dollar at the time of writing.

Automobile stocks today closed the day on a mixed note. While Tube Investments and Escorts closing in red, Tata Motors and Ashok Leyland ended the day in green.

As per reports, India's largest two wheeler manufacturer Hero MotoCorp is looking to launch refreshed versions of all its existing models over the next three months. The company today unveiled the new versions of all its existing models which would have additional features and new technologies. This move has been undertaken to take advantage of the upcoming festive season. As per plans, the company would be launching as many as fifteen new products. Prices for the same would be announced as and when launched. Further, Hero MotoCorp plans to launch new models early next year. The same would be based on new platforms. Given the fact that the company has been solo riding post its split with Honda, this move and the acceptance of the same in the market would be gauged closely. This is especially considering that the company has lost a good portion of its market share to its former partner.

Energy stocks today closed on a mixed note with Gail and Essar Oil being the top losers while Guj. State Petronet and Petronet LNG being the top gainers for the day.

A leading financial daily states that the oil ministry has intervened to sort out differences between the joint-venture partners, Oil and Natural Gas Corporation Ltd. (ONGC) and Cairn India over the prolific Barmer oil field at Rajasthan. The ministry has also streamlined the approval process between the two JV partners and the DGH. This move will expedite each proposal like drilling of wells by 5 months. Moreover, this development has brought both the partners on the same page with respect to production ramp ups. Both these companies have now agreed to increase the production from the current 20,000 bpd to 25,000 bpd over four months at the Rajasthan oil fields. The current production at the Rajasthan Barmer field stands at 175000/bpd. Technical glitches have prevented these companies from reaching their targets. Both these companies have been at loggerheads on several issues ranging from production approaches to approvals of proposals and plans. Now that the Ministry has intervened, the oil production at Rajasthan fields is expected to kick-start. This is definitely a positive step for both ONGC and Cairn India.