Indian equity markets up on global cues
Barring South Korea (down 0.3%), all Asian equity markets have opened the day on a positive note. The markets in Hong Kong (up 1.2%), Indonesia (up 1.4%) and Singapore (up 0.8%) are leading the gains in the region. The Indian equity market indices have opened the day in green as well. All sectoral indices were trading in the green with Power and Banking sector witnessing maximum gains.
The Sensex today is up by around 102 points (0.6%) and the NSE-Nifty is up by around 33 points (0.6%). Mid cap and Small Cap stocks are trading in the green as well with the BSE-Midcap index and BSE-Small cap index up by around 0.5% each. The rupee is trading at Rs 56.98 to the US dollar.
Most of the Engineering stocks have opened the day in green with Honeywell Automation and Shanthi Gears leading the pack of gainers while AIA Engineering and Thermax Ltd were trading weak. As per a leading financial daily, Engineering major Larsen & Toubro (L&T) is looking to divest its stake in subsidiary L&T Infrastructure Development Projects Ltd (L&T IDPL) in order to raise an amount of US$ 500 m. L&T IDPL manages a portfolio of infrastructure assets worth Rs 450 bn. L&T has not yet disclosed the size of the stake sale. Earlier, the company was planning to raise funds through an Initial Public Offer (IPO), but the plans for the same have been scrapped on account of volatile market conditions. It is now looking for private equity investment and has mandated Morgan Stanley to arrange the sale. L&T had bought out 21% stake in L&T IDPL two years back for Rs 5.5 bn. The stock has been trading in the green.
Oil and gas stocks have opened on a mixed note with Gas Authority of India Ltd (GAIL) and Essar Oil leading the pack of gainers while Oil India Ltd and Bharat Petroleum Corporation Ltd (BPCL) are witnessing losses. As per a leading financial daily, the country's largest gas importing company, Petronet LNG Ltd's (PLL) Kochi terminal will be able to operate at just one fifths of its actual capacity for a year on account of a delay in the commissioning of the supply pipeline. The Kochi terminal will be PLL's second terminal after Dahej (capacity of 10 MTPA) with an installed capacity of 5 million tonnes per annum (MTPA). The estimated investment of the terminal is around Rs 45 bn. As of now, the country has two terminals for importing liquefied natural gas (LNG) - Dahej and Hazira that are operated by Petronet and Shell respectively. The stock was trading in the red.
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Date 08-12-13, Duration 2:49, Views 567