Auto stocks are trading strong led by TVS Motors and Eicher Motors. According to a leading financial daily, Hero MotoCorp is planning to unveil its first indigenously developed motorcycle, an all new 250cc sports bike at the next Auto Expo in 2014. The motorcycle is being developed in collaboration with Hero Moto's American technology partner Erik Buell Racing (EBR). This bike is being developed for the domestic market as well as for customers in global markets that Hero Moto plans to enter as part of its ambitious international business plan. After its split with Honda, Hero is determined to showcase to the world its capability and competence in bringing world-class products with superior technology on its own in quick time. It is currently working on several models ranging from low-engine displacement to higher powered motorcycles and scooters.
Energy stocks are trading in the red led by Cairn India and Petronet LNG. According to a leading financial daily, Oil and Natural Gas Corporation Ltd. (ONGC) is planning to sell dollar bonds to fund the US $1 bn acquisition of a stake in oilfields in Azerbaijan. Hess Corp had agreed to sell its 2.72% stake in the large Azeri, Chirag and Guneshli (ACG) group of oilfields as well as its 2.36% stake in an associated pipeline to ONGC. ONGC's foreign investment arm, ONGC Videsh Limited, will buy the assets in a deal it expects to close in the first quarter of 2013. It is subject to Indian and other regulatory approval. ONGC Videsh may raise almost the entire acquisition cost selling the notes next quarter. ONGC Videsh is seeking cheaper funds abroad as rupee borrowing costs are about twice as much.