Indian stock markets remain flat

Fri, 12 Jun 11:30 am

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After opening the day in the red the Indian stock market indices have remained flat. Buying interest is seen in Tata Power and Reliance Industries & selling pressure has been observed in Vedanta & Tata Motors.

The BSE-Sensex is trading up by 36 points (0.14%) and the NSE-Nifty is trading up by 4 points (0.04%). The BSE Mid Cap index is trading up 0.18%, while the BSE Small Cap index is trading down 0.56% today. The rupee is trading at 64.04 to the US dollar. Gold and Silver are trading at Rs 26,932 Per 10 grams & Rs 36,811 Per kilogram respectively.

Stocks in banking sector are trading on a negative note with Development Credit Bank (DCB) and State Bank of India (SBI) bearing the brunt. India's leading public sector lender SBI expects to complete a deal that would reduce its stake in SBI Life Insurance Co to 49% by the end of next year. SBI owns 74% of stake in the Life Insurance Co and BNP Paribas Cardif holds the rest. The process of valuing the company is yet to commence so it is too early to comment on how much the stake will fetch. BNP Paribas Cardif, a unit of France's biggest bank, indicated in March that it is interested in raising its stake in the insurer. SBI Life Insurance has a net income of Rs 6.2 bn in the nine months to 31 December, according to a regulatory filing. SBI is also reducing its 74% stake in SBI General Insurance Co, a venture it runs with Insurance Australia Group Ltd. The Australian insurer has shown interest in increasing the stake in the insurer company. Stock of SBI is currently trading down by 0.24%.

Stocks in automobile sector are trading on a mixed note with Bajaj Auto trading up by 1.26% and Tata Motors trading down by 1.57%. India's largest automobile company Tata Motors and partner Fiat have begun strategic talks before the launch of sports utility vehicles, hatchbacks and compact sedans developed by Tata Motors and Fiat, independent of each other at their jointly owned manufacturing unit in Pune. These cars are expected to be introduced in the market by the respective companies within a period of one year. The partners are discussing product and investment plans which will be finalised for the jointly owned manufacturing plant located at Ranjangaon, Pune. Discussions are also on for sharing of engines and transmissions which will be an extension of its ongoing agreement. Products such as Fiat Linea, Avventura and Punto and Tata Motors' Vista and Manza are manufactured in the jointly-owned manufacturing plant. The stock of Tata Motors is currently trading down by 1.71%.