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Indian Indices continue to trade in positive territory during the post-noon trading session, having got off to a steady start this morning. Sectoral indices are trading on a mixed note with stocks from the FMCG and oil & gas leading the gains. IT stocks are however trading in the red.
The BSE Sensex is trading higher by 114 points (up 0.4%) and the NSE Nifty is trading up by 33 points (up 0.4%). The BSE Mid Cap index is trading higher by 0.4% while the BSE Small Cap index is trading higher by 0.7%. Gold prices, per 10 grams, are trading at Rs 31,250 levels. Silver price, per kilogram, is trading at Rs 42,022 levels. Crude oil is trading at Rs 3224 per barrel. The rupee is trading at 67.88 to the US$.
Stocks in the engineering sector are trading on a mixed note with TRF Ltd and Punj Lloyd trading in green. As per an article in Business Standard, Bharat Heavy Electricals Ltd (Bhel) has commissioned two units of 14 megawatts each at Salma Hydro Electric Project in Afghanistan.
Significantly, the Salma Dam (renamed as Afghan-India Friendship Dam) was inaugurated Narendra Modi. This project has been funded under Government of India's grant to Government of Afghanistan.
India has invested US$1.3 billion for rebuilding Afghanistan and views the country as key to its strategic interests.
Moreover, the company has recently commissioned another 195 MW thermal unit in Bihar. This is the second 195 MW unit to be commissioned by BHEL.
In its fourth quarter results for the financial year 2015-2016, Bhel has reported a 21% YoY decline in sales, and a 60% YoY fall in net profits during the period.
Bhel Ltd was trading up by 0.1% while writing.
Moving on to the news from telecom sector. Shares of Tata Communications Ltd surged to 8% to their highest in over 11 months after it was reported that Liquid Telecom has entered into an agreement to acquire Tata Communication's subsidiary Neotel for South African Rand 6.55 billion. Majority of Liquid Telecom is owned by Econet Wireless Global.
Neotel is the second-largest provider of fixed telecommunications services for both businesses and consumers in South Africa.
Reportedly, the deal is worth US$428 million. Tata Communications will get around US$285 million. The company stated that through a single access point, businesses across Africa will be able to access Liquid Africa's 24,000km of cross-border networks.
Earlier in March, it was reported that Tata Communications was looking for another buyer for the unit after a deal with Vodacom Group Ltd, a unit of Vodafone, fell through.
Tata Communications owns over 68% stake in South Africa's largest fixed line telephone service provider Neotel.
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