IT stocks lead among gainers

Fri, 7 Jun 01:30 pm

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Indian equity markets continued to trade strong during the post noon trading session. Most noticeable upward movement was noticed in stocks from the IT and oil and gas sectors. However, stocks from the realty and consumer durables sectors are witnessing maximum selling pressure.

BSE-Sensex is up by 111 points and NSE-Nifty is trading down up by 23 points. While BSE Mid Cap is trading up by 0.07%, BSE Small Cap index is trading up by 0.41%. The rupee is trading at 56.95 to the US dollar.

Majority of the energy stocks are trading in the green with Indraprastha Gas and BPCL being the biggest gainers whereas Chennai Petroleum and IOC are the major losers. As per a leading financial daily, Reliance Industries Ltd (RIL) has unveiled an ambitious capacity expansion plan over the next three years. The company will be investing Rs 1,500 bn across its key business verticals. The investments will be pumped in exploration & production of oil & gas, petroleum refining and marketing, petrochemicals, retail and 4G broadband networks. RIL will be scaling up all its major manufacturing sites at the same time. Among its capacity expansion initiatives, the capacity ramp up in its petrochemical capacity from 15 m tonnes to 25 m tonnes per annum is underway and its completion will ramp up the polyester business from 1.4 m tonnes to 4 m tonnes per annum. The polyester filament yarn plant at Silvassa will be commissioned in the first half of CY13 whereas the polyethylene terephthalate (PET) resin plant will commence operations in the second half of the year. RIL will commission two plants manufacturing purified terephthalic acid (PTA) next year increasing its PTA capacity to 4.3 m tonnes a year. The company will also be doubling its paraxylene capacity at Jamnagar over the next 30 months. RIL stock is currently trading up by 0.5%.

Most of the telecom stocks desc are trading in the red with ADC India Communication and AGC Networks leading among the pack of losers. As per a financial daily, Spectrum EGoM (Empowered group of ministers) will be meeting by the end of this month to finalise the reserve price for the third auction (3G) round. Further, the 3G auction will be for 800, 900 and 1,800 Megahertz (Mhz) spectrum. Reportedly, the DoT (department of telecommunications) will make it compulsory for all the telecom players to be part of the auction. Earlier when this auction was held in month of March, companies such as Bharti Airtel, Vodafone, Reliance Communications did not participate in the auction. If companies want to continue with their business, they will have to bid for the auction.