Markets added to their early morning gains as buying activity intensified in the previous two hours of trade. Currently, stocks from sectors like IT, auto and capital goods are leading the pack of gainers. Consumer goods and banking stocks are however trading in the red.
The BSE-Sensex and the NSE-Nifty are trading higher by about 120 points (0.7%) and 20 points (0.6%) respectively. The BSE-Midcap and BSE-Smallcap indices are trading mixed. While the former is down by around 0.3%, the latter is trading marginally higher. The rupee is trading at 46.66 to the US dollar.
As per a leading business daily, BHEL is in talks with companies like L&T and Pipavav Shipyard to jointly build off-shore oil rigs, a business proposition it had shelved earlier. In fact, the company is in talks with various other private players too for the manufacturing of off-shore oil rigs. It may be noted that the company had shown interest in this business earlier too, but had later decided to call it quits as it was unable to find a suitable partner. This was more so because of the crash in crude oil prices that came as a result of the credit crisis. Thus these plans to revive the business follow the revival in oil prices on the back of signs of the improving economic scenario. The oil price revival has, off late, helped cause a revival in exploration business and a resultant increase in demand for oil rigs.
BHEL is slated to soon start talks with the upstream oil companies like ONGC and Oil India for supplying deep sea oil rigs. While this move will help the company further add to the gamut of the engineering services it offers, we do see it as a hugely beneficial move. This is given that BHEL already has its hands full in executing equipment orders for power plants. It has also received flak from the government for delaying on execution in this business. So, we do not see the company entering a completely new field as a good business sense.
As per reports, FMCG major Marico expects a marginal decline in sales between October 2009 and March 2010. This is despite the recent cut it took in its product prices. Nevertheless, the company's top management has expressed that it is still targeting a double-digit growth during 3QFY10 and 4QFY10. Further, the company is planning to come up with newer variants for some of its mainstream brands in the health and wellness platform like 'Parachute' hair oil and sunflower edible oil 'Saffola' among others to propel growth. Out of this, a newer variant 'Saffola' is in the offing very soon.
Significantly, the management has also expressed that with valuations of several FMCG companies seeing declines in recent times, the company is also scouting for acquisition opportunities aggressively. It hopes to strike a good deal soon. FMCG stocks are trading mixed currently with Marico and its peer Pidilite Industries trading in the positive currently.