Indian stock market indices have been trading firm over the last two hours of trade on back of buying interest in index heavyweights. All sectoral indices are trading in the positive led by Metal and Auto stocks.
The BSE-Sensex is trading up by 459 points and NSE-Nifty is trading up by 148 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 1.2% and 1% respectively. The rupee is trading at 48.82 to the US dollar.
Automobile stocks are trading firm led by Tata Motors and Hero Motocorp. According to a leading financial daily, Maruti Suzuki is gearing up to set a new plant either in Gujarat or Maharashtra. The auto company is planning a 1,000 acre plant with a capacity of rolling out 2 m cars annually. The total investment outlay for the same is expected to be Rs 180 bn, including Rs 60 bn for auto ancillary unit. It will be a phased investment. Initially, Rs 60 bn will be invested to produce 0.1 m cars. Final decision is expected from the management by the end of this month.
FMCG stocks are trading strong. All stocks in the sectoral index are trading in the green. Paper Products and Camlin are the biggest gainers. According to a leading financial daily, Colgate is planning an investment of Rs 2 bn in Gujarat. This will be towards setting up a new plant in the state. The FMCG company is considering a industrial estate in Sanand (near Ahmedabad) as the location of the plant. This industrial estate is being developed by state-run Gujarat Industrial Development Corporation (GIDC). It may be noted that Colgate has existing manufacturing facilities at Aurangabad, Baddi (Himachal Pradesh), Hyderabad and Kundaim (Goa).