Indian stock market indices recouped some losses on account of buying interest in heavyweights during the last two hours of trade, but is still trading in the red. Oil and Gas stocks are leading the pack of losers while stocks from Realty and Banking space are finding favour from the investors.
The BSE-Sensex is trading down by 22 points and NSE-Nifty is trading down by 13 points. BSE Mid Cap and BSE Small Cap
indices are trading up by 0.04% and 0.01% respectively. The rupee is trading at 50.74 to the US dollar.
Auto stocks are trading mixed with Force Motors and Escorts leading the gainers while Tata Motors and Maruti Suzuki are the biggest losers. As per a leading financial daily, Mahindra & Mahindra (M&M), the country's largest car maker, may go for a joint venture with Yamaha India in the two wheeler segment with an expected capital infusion of Rs 2-3 bn. M&M itself lacks the technology for the two wheeler business and hence is looking for a technical tie up wile Yamaha expects to gain from the M&M's distribution and dealership network. M&M is expected to pitch in 51% of the capital and Yamaha will bring in the balance. The deal is expected to be ready for closure in the next 6-8 months. Back in 2008, M&M had forayed into the two-wheeler segment by acquiring 80% stake for Rs 1.1 bn in Honda's former Indian partner Kinetic Motor Company.
Cement stocks are trading mixed with Mangalam Cement and Birla Corp leading the gainers and Madras Cements and ACC Ltd. leading the pack of losers. As per a leading financial daily, Ultratech Cement will be increasing production capacity by 10 million tonnes per annum (mtpa). It plans to invest Rs 110 bn to raise the production capacity by first quarter of fiscal 2013-14. The capacity expansion is likely to be financed through a mix of internal accruals and borrowings. Post the expansion, the company's cement capacity will stand at 62 mtpa, captive power will increase from 504 MW to 674 MW and generation of green power through waste recovery from 4 MW to 65 MW. Through brownfield expansions at Chhattisgarh and Karnataka, the company will employ the proposed fund on clinkerisation plants by installing waste-heat recovery systems, instituting bulk packaging terminal and setting up ready-mix concrete plants.