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Sensex Opens in Green; Adani Ports & M&M Top Gainers
Wed, 22 Nov 09:30 am

Asian stock markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.86% while the Hang Seng is up 1.21%. The Nikkei 225 is trading up by 0.78%. US stocks jumped on Tuesday, pushing all three major indices to record closing highs, led by gains in this year's top-performing technology sector.

Back home, India share markets have opened the day on a positive note. The BSE Sensex is trading higher by 126 points while the NSE Nifty is trading higher by 34 points. The BSE Mid Cap index and BSE Small Cap index opened the day up by 0.2% & 0.4% respectively.

All sectoral indices have opened the day in green with consumer durables sector and realty sector witnessing maximum buying interest. The rupee is trading at 65.04 to the US$.

Mahindra & Mahindra share price surged 1.4% in the opening trade on the reports that the company and Ford Motor could create their own electric car line in the country to help battle pollution from the vehicles clogging India's roads.

Steel stocks opened the day on a mixed note with Adhunik Metaliks and Maharashtra Seamless being the most active stocks in this space. As per an article in The Economic Times, Steel Authority of India Ltd (SAIL) and ArcelorMittal are likely to sign a joint venture agreement to set up a Rs 50-billion plant to make steel for automobiles early next year.

Reportedly, it would be a JV (joint venture) of 1.5 million tonne capacity steel plant which would produce high-end steel which would be used in car manufacturing.

The proposed joint venture will construct a cold rolling mill and other downstream finishing facilities in India, touted as one of the fastest growing automotive markets in the world with the production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units.

The plant will be a 50:50 joint venture, with SAIL supplying the raw material from its Rourkela plant. This is part of a plan drawn up by SAIL to improve its topline.

The government is keen the venture (for which a memorandum of understanding was signed in 2015) takes off as it wants to unlock value in successful state-run companies through partnerships with foreign players, who will bring in the latest technology, the reports noted.

Meanwhile, the SAIL share price touched its 52-week high Rs 88 and 52-week low Rs 47.2 on 6 November 2017 and 22 November 2016, respectively.

SAIL Share Price has Gained 64% in Last 1 Year


SAIL share price opened the day down by 0.8%.

Moving on to the news from oil & gas sector. As per an article in a leading financial daily, Oil and Natural Gas Corp (ONGC)'s overseas arm ONGC Videsh Ltd (OVL) has acquired 15% stake from UK's Tullow Oil in an oil block in Namibia.

Notably, this is OVL's second acquisition in as many months in the African nation.

Reportedly, the license is currently under First Renewal Exploration Period and the joint venture partners are carrying out data evaluation for identifying a drill prospect. Eco Oil and Gas Namibia Ltd, Azimuth Namibia Ltd and National Petroleum Corp of Namibia are the other partners in the license.

In October, ONGC Videsh acquired 30% participating interest in another exploration license from Tullow. The deals mark the consolidation of ONGC Videsh's interest in Namibian offshore, the reports noted.

The acquisition is consistent with ONGC Videsh's strategic objective of adding high quality exploration and production assets to its existing portfolio.

ONGC share price opened up by 0.7%.

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