After opening the day on a positive note, the Indian markets have added to their early gains. Most sectoral indices are trading on a firm note with stocks from the banking and pharma sectors leading the gains. However mining stocks are witnessing selling pressure.
The BSE-Sensex is trading up 146 points (up 0.5%) and the NSE-Nifty is trading up 44 points (up 0.5%). The S&P BSE Midcap index is trading up by 0.8% while the S&P BSE Smallcap index is trading up 0.6%. The rupee is trading at 63.76 to the US dollar.
Automobile stocks are trading on a mixed note with Ashok Leyland and Tube Investments leading the gains. As per a leading financial daily, Mahindra &Mahindra (M&M) is going to launch more vehicles in the October-March period of this fiscal in order to fight competition in the sector. Further, on a separate note, the company has reported a 3.4% YoY decline in its standalone net profit for the quarter ended June 2015. This was due to the slowdown in overall sales with tractor sales remaining under most of the strain. Presently the stock of M&M is trading down 0.2%.
Stocks in the energy sector are also trading mixed with MRPL and Gujarat Gas witnessing maximum selling pressure. According to financial times, Oil &Natural Gas Corporation (ONGC) is going to witness an 11% rise in its output over the next three years as it brings newer fields in production. This increase in output will primarily come from offshore fields, mainly off the west coast. The company is going to invest Rs 241.8 bn in six major field developments and another Rs 174.9 bn in redevelopment of three currently producing fields. For the FY 2014-15, the company has broken a seven-year trend of dipping crude oil production by reporting a marginal rise in output to 22.262 m tonnes. Stock of ONGC is currently trading down by 1%.