Monday April 9, 01:30 PM
Rangebound at the top... |
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By Equitymaster.com
The indices remained rangebound during the previous hour of trade. Currently, while FMCG stocks are witnessing a selling pressure, stocks across the other sectors are seeing buying activity. The advance to decline ratio is currently poised at 29 to 1 on the BSE Sensex.
The BSE Sensex is trading at 13,141 (up 285 points) while the NSE Nifty is trading at 3,835 (up 83 points). The rupee is trading at 42.77 to the dollar.
Metal stocks are witnessing mixed sentiments. NMDC remains unchanged over the previous close while its peer Hindustan Zinc is trading (up 3%). Ore supplier NMDC is looking at vertical integration as a way to improve profitability. The company is looking to rope in steel-makers RINL and SAIL to set up a greenfield 2 mt steel plant costing about Rs 40 bn. NMDC will also pick up Rs 10 bn of equity in the proposed super joint venture of five public sector companies for acquiring overseas coal blocks. The steel plant project is a part of NMDC's overall Rs 90 bn investment plan. This move comes at a time when steel capacities in the country are increasing. NMDC has also started work on setting up a sponge iron plant and two pelletisation plants. Although the profitability of NMDC will be hurt by almost Rs 1.5 bn due to imposition of ore export cess, the company will continue to increase ore supplies to domestic steelmakers.
PVR is trading 2% higher currently, while its peer Adlabs is trading 3% higher. With the mall mania catching up in eastern India, a lot of opportunities are seen emerging for multiplexes. PVR Ltd is looking at setting up 50-60 screens in 7-8 locations in eastern India within the next 5 years. The Rs 1.8 bn multiplex chain plans to invest close to Rs 1 bn in Kolkata alone. The other proposed locations are Rajarhat, Howrah, Siliguri, Durgapur and Orissa. Its first 8-screen-2200-seater multiplex would come up with an investment of Rs 180 mn within the next three years. Ticket prices are likely to be set in accordance with the rentals in the proposed location. The cash breakeven time per multiplex is expected to be 3 years. At present, PVR Cinemas has 81 screens across 8 cities and further plans to add 250 screens across the country with an investment of Rs 3 bn.
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