Indian equity markets have given up early gains but continued to trade strong over the last two hours of trade. Auto and capital goods stocks witnessed maximum buying interest while IT and FMCG stocks witnessed maximum selling pressure.
Finance stocks are trading strong. Indiabulls Finance Limited and JM Financial Limited are the biggest gainers while Crisil and HDFC are the biggest losers. According to a leading financial daily, Power Finance Corporation (PFC) is planning to raise Rs 45.9 bn through tax-free bonds by March next year. The proposed issue is part of its plan to garner Rs 50 bn by way of issuing tax free securities in the current fiscal (2012-13). Out of the total target, Rs 4.1 bn has already been raised. The bonds would be issued in one or more tranches through non-convertible debentures (NCD) route. The funds would be utilised towards lending purposes, debt servicing and working capital requirements.
Auto stocks are trading in the green led by Maharashtra Scooters and Force Motors. According to a leading financial daily, automobile companies led by Maruti Suzuki are planning to raise car prices in January 2013. While Maruti Suzuki is likely to increase prices by up to Rs 20,000, Toyota Kirloskar Motor may also raise prices by 1-2% across all models. Increasing pressure on margins due to currency fluctuation appears to have necessitated this move. Other companies, such as Honda Cars India and Volkswagen India, were also contemplating such a move, but the details are still being worked out.