Indian indices continued their journey northwards on buying interest in heavyweights during the previous two hours of trade. Stocks from the consumer durable and metals space are seeing the maximum buying interest while stocks from the IT and PSU space are seeing the minimum.
The BSE-Sensex is trading up by 274 points while NSE-Nifty is trading 81 points above the dotted line. BSE-Midcap is up by 0.9%, while BSE-Smallcap index is 1% above Friday’s closing. The rupee is trading at 44.41 to the US dollar.
Energy stocks are trading up led by Reliance Industries and MRPL. As per a leading financial daily, Oil and Natural Gas Corporation's (ONGC) first ever 726 MW commercial power project would start generating electricity by December 2011. The plant which is based in Palatana, will be completed in 2 phases. The first unit will produce 363 MW of power and once the second unit becomes operational, the plant will generate 726 MW of power. The plant is expected to be fully operational by March 2012 at an investment of Rs 90 bn. As per ONGC officials, Power Grid Corp of India Limited (PGCIL), OTPC and the northeastern states would set up a 660-km transmission line at the cost of Rs 17 bn to connect Palatana with the national grid at Bongaigaon in western Assam. The plant, the foundation for which was laid in 2005, has faced delays due to difficulties in transporting heavy turbines and machineries to the plant site. However, the company plans to use a jetty being developed in the Ashuganj river port in Meghna river in eastern Bangladesh to ferry the heavy equipment. We hope now that the project will not face any further delays and will be completed as per the latest schedule.
Auto stocks are trading strong with Maruti Suzuki and Tata Motors leading the gains. However, Hero Honda is trading in the red. Ashok Leyland Ltd (ALL) is looking at acquisitions in the global market so as to bag a slot amongst the top 10 CV manufacturers across the world. Backed by its strong engineering capabilities and technology advantages, ALL senses huge opportunities in the overseas markets. The company is actively pursuing a strategy to acquire small bus companies with sizeable customer base across Latin America, South East Asia and West Africa. It is also eyeing design/drawing technology companies for possible acquisitions and intends to put up brownfield plants in overseas markets to meet local demand. Apart from engineering capabilities ALL also has the capacity to offer customized solutions (including engines, telematics and low entry buses) which opens up huge opportunities for the company.