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After opening the day in the green, the Indian Indices have continued to trade on a positive note during the post-noon trading session. Sectoral indices are trading on a mixed note with stocks from the banking and metal sectors leading the gains. Consumer durables stocks are however trading in the red.
The BSE-Sensex is trading up 98 points (up 0.4%) and the NSE-Nifty is trading up 30 points (up 0.4%). The S&P BSE Midcap index is trading up 0.2% while the S&P BSE Smallcap index is trading up by 0.1%. Gold prices, per 10 grams, are trading at Rs 25,231 levels. Silver price, per kilogram is trading at Rs 33,875 levels. The rupee is trading at 66.71 to the US$.
Cement stocks are trading on a mixed note with Prism Cement and Heidelberg Cement leading the gains. ACC Ltd is planning to open a series of cement brick-making units in partnership with dealers and social organizations. The move is a bid to retain the company's retail rural market share and enhance focus on value-added products.
Under the partnership, ACC Ltd will provide the expertise and technical support while the joint venture partner would own and operate the units. As planned, each plant for this project calls for an investment of Rs 20-26 million. Furthermore, the brick units will compulsorily source cement from ACC, which has opened 19 brick units largely in the northern and eastern part of India.
The company is also planning to set up other 26 brick units in seven months. The company stated that the brick units have opened the doors to new sales channel in few places with each unit consuming about 100 tonnes of cement in a month.
ACC Ltd is India's foremost manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices. The company has announced its financial results for the third quarter of the calendar year 2015. During the quarter ended September 2015, while the company's standalone sales reported flat growth, the net profit plummeted 42.9% YoY respectively. Read our detailed analysis of the results here.
Stock in the banking space are trading on a positive note with Oriental Bank of Commerce and IDBI Bank witnessing maximum buying interest. As per a leading financial daily, State Bank of India (SBI) is finalizing plans to set up a subsidiary for managing its large portfolio of real estate properties and those taken on lease or rent. Once formed, the subsidiary will take over all these properties.
The subsidiary will be formed in the next financial year. One of the huge properties of the bank includes Samriddhi Bhavan in Kolkata, which also houses the Local Head Office (LHO) of the Bengal circle. Other prominent ones included the Bengal circle's CGM bungalow and corporate office in Mumbai. Currently, the bank is collecting data for listing these properties.
State Bank of India is the largest state-owned banking and financial services company in India. It recently declared its results for the second quarter of the financial year 2015-16 (2QFY16). Madhu Gupta, Managing editor of ResearchPro, has recently released a detailed analysis on the same. In the note Madhu explains factors driving the performance of the company in this period and what to expect going forward. If you are interested in the stock, then this is a necessary read.
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