Despite trading in the red, the Indian stock markets have pared some of its losses in previous two hours of trade led by sustained buying at the lower levels. Entire broad markets are still under pressure and trading in the red. Losers are being led by stocks from metals and FMCG sectors while software stocks are leading the pack of gainers today.
The BSE-Sensex is trading down by 160 points and the NSE-Nifty is trading down by 50 points. The BSE Mid Cap index is trading down 0.4% and the BSE Small Cap index is trading down 0.3% today. The rupee is trading at 61.16 to the US dollar.
Engineering stocks are trading on a mixed note today. Gainers are being led by BHEL, while Welspun Corp and Siemens stocks are trading in the red. As per a leading business daily, Blue Star has given up plan to merge its subsidiaries. It informed to exchanges that board has reviewed its plan of scheme of amalgamation of its Blue Star Design & Engineering and Blue Star Electro Mechanical in light of change in amendments to the Income Tax Act in 2014. Earlier the rationale for merger was justified but given the latest changes in the tax laws the proposed motion appeared to be inappropriate. As such, the company has decided to cancel the same. For full year period FY14, the company's consolidated net sales stands at Rs 29,149 m slightly lower than that of FY13. However, at Rs 775 its net profit is up by 98% YoY. Blue Star is trading down 0.7%.
Energy stocks are trading on a mixed note. Castrol India and Reliance Industries are leading the pack of gainers, whereas Cairn India is trading in the red. As per a leading business daily, energy major Cairn India has reported that output from its flagship Rajasthan oilfield has dropped by 7% YoY in the second quarter (Q2) ended September 2014 of the current fiscal. This is mainly due to shutdown witnessed at the field for carrying out maintenance work during the quarter. Excluding the shutdown period the field's productions are comparable to that of Q1. However, the production at the field is normal now. The company holds 70% stake in the block, while rest 30% is being held by state-owned ONGC. Cairn India is trading down by over 3%, while ONGC is trading down by 0.7%.