After trailing in the red during the morning session, Indian indices steadily marched above the dotted line during the previous two hours. Currently, stocks from the consumer durables, metals and FMCG space are leading the gains. However, auto stocks are trading weak.
Currently, the BSE-Sensex is trading up by around 70 points, while the NSE-Nifty is up by about 22 points. The BSE-Midcap and Smallcap indices are trading higher by 0.1% and 0.3% respectively. The rupee is trading at 45.73 to the US dollar.
Auto ancillary stocks are trading mixed with Sona Koyo Steering and NRB Bearings trading firm while Munjal Showa and SKF India are trading weak. Bharat Forge, India's biggest automotive forgings maker, expects its China venture to post an annual profit for the first time since it started operations in 2006. The joint venture in which the Indian company holds a 52% stake, had posted a loss of Rs 315 m in 2009. The Chinese joint venture has now turned around completely. This is due to increase in capacity utilization, restructuring and improvement in efficiency parameters. It is now looking at expanding its product portfolio and increasing the customer base. Bharat Forge aims to tap demand for auto parts in China where car sales may climb by as much as 15% in 2011, according to estimates. The company currently makes parts for Toyota Motor Corp. and General Motors.
The stock of Havells India Limited is trading firm on the back of the company mulling over doubling its capacity for compact fluorescent lamps (CFLs) over the next two to three years. Post the expansion, the company will be able to produce about 10 m CFLs. This move seems to be part of the company's strategy to leverage its Sylvania brand, which it launched in India recently. This company was acquired by Havells in 2007. As per Havells' management, the company would be spending nearly Rs 1.2 bn in FY12 towards this expansion. It must be noted that while the company does not provide the detailed break up of revenues, the CFL segment, which is part of the company's lighting and fixtures business, contributed to about 12% of the company's standalone revenues over the past three years.