Indian stock markets continued to trade positive during the previous two hours of trade led by persistent buying among the Index heavy weight. Buying activity is led by stocks from realty and energy stocks, while stocks from the IT sector are trading weak today.
The BSE-Sensex is trading up by 245 points and the NSE-Nifty is trading up by 65 points. The BSE Mid Cap index is trading up 1.5% and the BSE Small Cap index is trading up by 1.4% today. The rupee is trading at 59.19 to the US dollar.
Most of mining stocks are trading firm today. While Sesa Sterlite is trading weak, MOIL and Ashapura Minechem are leading among the stock of gainers today. As per a leading business daily, Coal India is planning joint ventures worth Rs 100 bn with Gail India, RCF and Fertilizer Corporation of India (FCIL). The deal will involve manufacturing of 3 lakh tonnes of urea per annum and about 300 to 400 tonnes of ammonium nitrate daily. It may be noted that ammonium nitrate which is in short supply in the country, is the main ingredient for making explosives used for blasting materials at coal mines. Its short supply causes increase in price resulting in higher input costs for Coal India. The company will form two joint ventures. The joint venture with GAIL is for coal gasification technology in which Coal India will hold minority stake. The second joint venture is with RCF and FCIL, where Coal India will hold majority stake. This venture will utilize gasified coal technology to manufacture ammonium nitrate and urea. In the meanwhile Coal India will seek shareholder's approval to change its article of association. The stock is trading higher by 0.4%.
Majority of the auto stocks are trading in the green with Hero MotoCorp and Mahindra & Mahindra being the major gainers. As per a leading financial daily, Hero MotoCorp posted a sales growth of 8% YoY to 6.02 lakh units in May. Even sequentially, the sales were up by 5.5% from 5.7 lakh units sold in April. The company had split from its collaborator Hero Motor Company in 2011. But the company has been investing in developing technology for new bikes as well as expanding its presence in the overseas markets. Hero MotoCorp stock is trading up by 2.2%.