Thursday April 10, 11:00 AM
Volatile start |
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By Equitymaster.com
After starting the session on a cautious note, markets are currently trading in the positive territory as buying is being witnessed across index heavyweights. The advance-decline ratio is currently poised at 2.8 to 1 on the NSE indicating optimism. Select stocks from the banking, pharma and software sectors are trading lower currently. Further, CNX Midcap is trading higher by 1% indicating that buying is not just restricted to frontline stocks.
The BSE Sensex is trading at 15,896 (up 105 points) while the NSE Nifty is trading at 4,784 (up 37 points). The rupee is trading at 39.83 to the dollar.
As per a leading business daily, Tata Steel (TISC.BO, news) will form a special purpose vehicle (SPV) with MMTC for acquiring gold and diamond mining businesses overseas. In the proposed SPV, MMTC would hold 26% stake while the remaining 76% will be held by Tata Steel. While MMTC is likely to bring its expertise in mineral trading and mining into the venture, the Tatas would infuse cash to help the SPV to place aggressive bids for mining rights. The venture is likely to start operations by acquiring mining rights for diamond in Angola and Namibia before venturing in other African markets. The SPV would also look for business opportunities in iron ore and coal mining abroad through acquisitions or fresh mining rights. The SPV move is in line with the SPVs formed between five PSUs including SAIL and NTPC to reduce dependence on imports. The stock (marginally up) along with its peer SAIL (up 1%) is trading firm.
The US markets continue to remain weak on the back of expectations of weak earnings report. The Dow Jones (ended marginally lower), the tech-laden NASDAQ and S&P 500 (down 1% each) ended the session in the red yesterday. The crude oil prices rose by US$ 2.4 to settle at US$ 110.9 a barrel on the NYMEX on the back of the falling crude stock report. Gold prices also moved up by US$ 20 to close at US$ 938 an ounce. As regards global markets, the European indices ended in the red yesterday, while the Asian indices are trading mixed currently.
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