Monday April 16, 12:30 PM
Advancing further... |
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By Equitymaster.com
Markets moved deeper into the positive territory during the previous hour of trade as buying activity intensified among index heavy weights. The overall market breadth is positive with gainers outnumbering losers by a ratio of 5 to 1 on the NSE. Barring select aluminium, energy and pharma stocks, buying is being witnessed across sectors.
The BSE Sensex is trading at 13,623 (up 239 points) while the NSE Nifty is trading at 3,993 (up 75 points). The rupee is trading at 42.29 to the dollar.
At the current juncture, steel stocks are trading firm with major gainers being JSW Steel (up 3%), Tata Steel (TISC.BO, news) (up 2%) and SAIL (up 1%). As per a leading business daily, SAIL has been allotted the Sitanala coking coal block in Jharkhand, which has reserves of around 108 million tonne (MT). This will go some way in meeting the coal requirements of its integrated steel plants. SAIL's total annual coal requirement is around 15 MT, of which around 10 MT is imported. About 1.6 MT of coal is required to produce 1 tonne of crude steel. According to the company's corporate plan 2011-12, the company would endeavor to achieve 22 MT capacity and the coal requirement for enhanced capacity would be in the region of 22 to 23 MT as against 15 MT at present. Thus, SAIL's requirement of coal will only go up. However, the allotment of Sitanala coking coal block will result in significant cost savings on raw materials front.
As per a leading business daily, Gas, a 50:50 joint venture between Raymond and Grotto SpA (an Italian apparel company, is considering a manufacturing option in India. Over the next three years, Raymond will be opening 630 points of sale for Gas. This year, it plans to open 120 points of sale with 6 flagship stores and 20 exclusive brand outlets. The company is estimating a turnover of Rs 2 bn in the next three years. The retail roll out will be a combination of company-owned and franchisee stores. During 3QFY07, Raymond Apparels witnessed a revenue growth of 12% YoY. The launch of the products under the 'Gas' brand will further help company increase its apparel revenue share. The stock (up 1%), along with its peer Arvind Mills (ARMI.BO, news) (up 3%), is trading firm.
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