IT stocks lead markets higher

Thu, 14 Oct 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have stayed in the positive territory. Other key Asian markets are in the green with Japan (up 1.8%) leading the pack of gainers. The US markets ended higher by 0.7% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with software majors attracting investors' interest. The BSE-Sensex is trading higher by around 120 points, while the NSE-Nifty is trading up by around 30 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.6% and 0.7% respectively. The rupee is trading at 44.33 to the US dollar.

Energy stocks have opened the day on a strong note. Gainers here include Petronet LNG and Indian Oil. As per a leading business daily, the government is set to divest 10% of its stake in Indian Oil and 5% in ONGC the first quarter of the next fiscal year. The Indian Oil public offer will also have a 10% fresh issue. These announcements come at a time when the government is diluting 10% stake in Coal India through a public offer to raise Rs 154 bn, making it the biggest ever IPO in India. A public offer for SAIL is also on the cards this December and the government had already appointed bankers for the same. The government aims to raise Rs 400 bn through disinvestment this fiscal and has mopped up over Rs 10 bn by divesting its stake in SJVN and around Rs 10 bn in Engineers India. Public issues of Shipping Corporation of India, Power Grid, Hindustan Copper and Manganese Ore India are also expected in the current fiscal.

Auto stocks have opened the day on a strong note. Gainers here include Ashok Leyland and M&M. As per a leading business daily, M&M expects to sign a final agreement to buy South Korea's Ssangyong Motor Co by December as it starts pricing negotiations. The entire process is likely to be completed by March next year. Ssangyong Motor makes Rexton and Kyron SUVs and the Chairman luxury sedan. Besides catering to South Korea, it also exports to China, Russia, Europe and the Middle East. Hence, the purchase will help M&M gain an international foothold.