Thursday March 8, 02:00 PM
Buoyancy persists... |
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By Equitymaster.com
The indices continued to climb higher during the previous hour of trade. The positive sentiment has rubbed off on all sectors as most stocks in the Nifty were seen trading higher. However, select stocks in the pahrma, FMCG and Energy sectors were seen facing selling pressure. The overall market breadth is positive with the advance to decline ratio poised at 1.8 to 1 on the NSE.
The BSE Sensex is trading at 12,874 (up 294 points) while the NSE Nifty is trading at 3,716 (up 89 points). The rupee is trading at 44.39 to the dollar.
Automobile stocks are trading firm with Kinetic Motors (up 5%), Tata Motors (up 4%), Maruti Udyog (up 2%) and M&M (up 1%) being the major gainers. According to a leading business daily, Mahindra and Mahindra (M&M), has worked out the offer of cash and equity to acquire the 43.5% stake in Punjab Tractors (PTL). The offer works out at Rs 340 per share valuing the company at over Rs 21 bn. Its closest competitor, Ashok Leyland (ASOK.BO, news) , has made an all cash offer for the stake of Actis and Burman family. However, both the offers require the sellers to give certain guarantees with respect to some of its liabilities like outstanding debtors, inventories and legal tussle with Japanese firm Sumitomo. If M&M is successful in acquiring the stake, its domestic market share of farm equipment would be 40% (which is currently 32%) while its closest rival Tafe would have a share of 23%.
Energy stocks are currently trading higher with ONGC (up 4%), Reliance (RELI.BO, news) Natural Resources (up 3%), being the major gainers. According to a leading business daily, GAIL (India) and Shell India today agreed to connect the state-owned gas utility's pipeline network with Shell's liquefied natural gas (LNG) terminal at Hazira. The pumping that is expected to start soon will allow for evacuation of regassified LNG from the Hazira terminal for supplies to GAIL (GAIL.BO, news) 's customers. This is an important strategic move as it will allow for supplies to its petrochemicals plant in Pata, Uttar Pradesh along the Hazira-Bijapur-Jagdishpur (HBJ) pipeline which otherwise would have been starved for gas once the ONGC's methane-propane plant came up at Dahej in Gujarat. The stock of GAIL is currently trading marginally lower.
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