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After trading on a weak note during the morning session, the Indian Indices continued to trade in the negative during the post noon trading session. Sectoral indices are trading in the red with stocks from the consumer durable and capital goods sectors bearing the maximum burnt.
The BSE-Sensex is trading down by 103 (down 0.4%) and the NSE-Nifty is trading down by 34 points (down 0.4%). The S&P BSE Midcap index is trading marginally up while the S&P BSE Smallcap index is trading up by 0.2%. Gold prices, per 10 grams, are trading at Rs 26,840 levels. Silver price, per kilogram, is trading at Rs 36,975 levels. Crude oil is trading at Rs 2,847 per barrel. The rupee is trading at 64.95 to the US$.
Engineering stocks are trading on a mixed note with the stocks of Thermax and TRF witnessing maximum buying interest. According to a leading financial daily, Avantha Group company Crompton Greaves Ltd has agreed to sell its power systems business in Canada to PTI Holdings Corporation for about 20 million Canadian dollars. As per the agreement, the structure of the deal and its commercial terms remain subject to applicable regulatory approvals.
In May, the company had received a firm offer for divestment of its power system business in Canada.
The company has been looking to sell a few of its assets to repay debt. Recently the company, as a part of such asset optimization initiatives, has entered into a definitive agreement for sale of the company's land situated in Mumbai. This is admeasured approximately 53,000 sq. meters and will be sold to Evie Real Estate Pvt Ltd for an aggregate sum of Rs 4,964.8 million.
Presently, stock of the company is trading down by 0.6%.
Stocks in the auto ancillaries sector are also trading mixed with NRB Bearings and Fag Bearings leading the gains. As per an article in Economic Times, Bharat Forge has reported that it is reorganizing operations of its European subsidiaries. The same is in order to reduce its costs and facilitate tax and fiscal consolidation.
The company confirmed that this restructuring will not have any adverse impact on the consolidated financials of the company.
Moreover, in relation to its new structure, the consequent changes to the other entities within the group are being implemented. All the transactions are within the Bharat Forge Group only and at book value.
Recently the company had taken a hit due to a plunge in its North America order inflow. Ordering for trucks in North America fell by 21% YoY during the month of September. This was the seventh consecutive month of decline for the company in its order inflows.
Scrip of the company is trading up by 0.5%.
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