Thursday March 15, 11:30 AM
Steady upmove... |
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By Equitymaster.com
The indices managed to tread higher during the previous hour of trade. Stocks in the FMCG, engineering, software and telecom sectors are garnering buying interest. The overall market breadth is positive with the advance to decline ratio poised at 6.3 to 1 on the NSE.
The BSE Sensex is trading at 12,746 (up 216 points) while the NSE Nifty is trading at 3,699 (up 58 points). The rupee is trading at 44.15 to the dollar.
Telecom stocks are trading firm with Tata Teleservices Maharashtra (up 3%), VSNL, MTNL (MTNL.BO, news) , Reliance (RELI.BO, news) Communication and Bharti Airtel (up 2% each) being the major gainers. According to a leading business daily, VSNL's board has approved the hive off of its broadband and retail business into a separate subsidiary called DIL Internet for a consideration of upto Rs 40 bn. The business would be hived off with all related assets and liabilities, with the proposed hive off being effective form March 2007. The company currently classifies this business under 'other services' with its dial-up services available in 300 towns and cities and broadband available across 43 cities. 'Other services' have contributed about 11% to the company's overall revenues over the last few quarters. Although there over 100 Internet service providers in India (ISP) the market is presently dominated by the top 5 players who amongst themselves have over 80% market share. VSNL is currently the fifth largest player having a market share of about 8%.
Automotive stocks are currently trading higher with TVS Motors, Ashok Leyland (ASOK.BO, news) , M&M (up 2% each), Maruti Udyog and Hero Honda (HROH.BO, news) (up 1% each) being the major gainers. According to a leading business daily, Mahindra and Mahindra is targetting exports to constitute about 20% of its overall revenues by the year 2009. The company is already exporting its SUVs to South Africa, Brazil, Egypt and some of the neighbouring countries. It now targets to enter the Russian market as well with Scorpio and Bolero. The exports of these cars during FY07 have grown to 12,500 units registering a 100% YoY growth. The company's automotive division is also designing a car for the US markets that account for as much as 90% of its total tractor exports.
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