Indian share markets pared gains but continued to trade firm in the post-noon trading session. Majority of the sectoral indices are trading in the green with engineering and banking stocks being the biggest gainers. IT and realty are among the few stocks trading in the red.
Most of the engineering stocks are trading in the green led by Jain Irrigation and Praj Industries whereas Kalpataru Power and Sanghvi Movers are trading in the red. As per a leading financial daily, Crompton Greaves has announced demerger of its consumer product business into a separate company. The demerger would be completed by March 2015 and would need approval of BSE and SEBI. The shareholders in the parent company will receive three new shares in the demerged consumer products company for every four shares held. Crompton Greaves has also raised the investment limit for FIIs in the consumer products company to 100% of the paid-up equity share capital. The consumer business division of the company manufactures fans and lighting appliances that are sold only in India and contributes 21% to overall revenues. The other businesses of the company comprise power and industrial systems. On completion of the demerger, Crompton Greaves will hold 25% stake in the consumer products company and will have a lock-in of three years. Crompton Greaves stock is currently trading up 0.4%.
Automobiles stocks are trading on a mixed note today. Gainers are led by Mahindra & Mahindra and Ashok Leyland, whereas Tata Motors is trading on a weak note today. As per a leading business daily, Hinduja group flagship Ashok Leyland has got an order worth USD 17 m for supplying 630 buses to operators in Sri Lanka. Ashok Leyland has bagged the order from private bus operators through its joint venture in Sri Lanka. The order strengthens the company's position as a market leader after an earlier order for 2,200 buses. The stock is trading higher by 2.4% today.