Mid and smallcaps outperform
Indian equity markets have been trading in the red during the last two hours of trade on the back of selling witnessed across sectors. The list of losers was led by realty and banking stocks while FMCG and capital goods managed some gains.
The BSE-Sensex is down by 12 points and NSE-Nifty is trading flat. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.4% and 0.9% respectively. The rupee is trading at 54.88 to the US dollar.
Auto ancillaries stocks are trading in the green led by Mahindra Forgings and Amtek Auto. According to a leading financial daily, four companies have been shortlisted to buy a controlling stake in Shanthi Gears. These include Triveni Engineering, Elecon Engineering, Bharat Forge and a Belgian gear box producing company. Many companies had put in their bids post which these 4 have been shortlisted. We may note here that Shanthi's chairman along with his family is contemplating to sell of their 44% stake in the company. For this, they may get Rs 1.8 bn as per current market price. However, in case the promoters ask for a premium, the deal value will go higher. Shanthi Gears manufactures a wide range of customized gears for a few industries. It has 4 plants in and around Coimbatore.
Steel stocks are trading in the red led by JSW Steel and Bhushan Steel. According to a leading financial daily, SAIL is hoping to emerge as the country's largest iron ore producer within the next 18 months. If it can get clearances and approvals for all its captive mines, SAIL could surpass the iron ore production capacities of National Mineral Development Corporation (NMDC). NMDC is producing around 28 million tonne per annum (mtpa) of iron ore, while SAIL is producing iron ore around 25 mtpa. And in the next one-and-a-half years, SAIL's production is going to be around 42 mtpa when their steel-making capacity will go up to a level of 24 mtpa. The iron ore production of NMDC will reach to around 40 mtpa over the next three years. The ramping up of iron ore mines is critical to SAIL's expansion to 24 mtpa of steel that has suffered a considerable delay.
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Mumbai Police rejected Chennai Super Kings (CSK) boss Gurunath Meiyappan's plea to give him time till May 27 to appear before its crime branch for questioning with regard to his role in betting and spot fixing in the current edition of the IPL.
Date 23-05-13, Duration 1:44, Views 97