The Indian stock markets continued to remain strong during the previous two hours of trade. However, it has pared gains from the day's high, on account of profit booking at the higher level. Buying is witnessed across broad markets. Among the sectoral indices, only software stocks are trading in the red. Gainers are being led by energy and auto stocks.
The BSE-Sensex is trading up 290 points and the NSE-Nifty is trading up by 85 points. The BSE Mid Cap index is trading up 1% and the BSE Small Cap index is trading up 0.8% today. The rupee is trading at 61.28 to the US dollar.
Almost all automobile stocks are trading on a firm note today. TVS Motors and Tata Motors are the major gainers. As per a leading business daily, the automobile industry is seeking government support to increase export turnover. As such, the industry is looking to enter new geographies to combat slowdown in European auto market. But various regulatory issues in export markets of Algeria and Sri Lanka are proving to a hurdle. This has resulted in fall in car exports. As a result, the industry has identified 20 new regions to offset losses from traditional export markets. However, for exploring those markets they will require government help in relation to taxation and non-tariff barriers for making their vehicles competitive in those markets.
Majority of the food stocks are trading in the green led by Ruchi Soya Industries and Sterling Biotech. Agro Tech Foods and ITC are among the few stocks trading in the red. As per a leading financial daily, the Government has received 72 proposals from different companies like ITC, Adani Group and Future Group for setting up 17 food parks. The proposals would be approved over the next 2-3 months. Each park is likely to attract investments to the tune of Rs 1.25 bn and the government would be providing Rs 500 m grant on different expenses other than the land cost. After receipt of approval, the company is required to acquire 50 acres of land within the stipulated time and decide the location of the project. According to the Food Processing Ministry, the country was incurring losses to the tune of Rs 440 bn due to wastage of fruits, vegetables and grains that was stoking food inflation in the country. Therefore the Ministry is developing food maps to identify areas of surplus raw material for processing and developing clusters for the set up of food processing industries.