Metal stocks lead markets higher

Mon, 12 Jul 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened at the breakeven mark, but soon surged in to the positive territory. They have firmly held on to their gains since then. Other key Asian markets are in the green with China (up 0.8%) leading the pack of gainers. The US markets closed higher by 0.6% last Friday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with metal, auto and software majors finding investors' favour. The BSE-Sensex is trading higher by around 132 points, while the NSE-Nifty is up by about 36 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.7% and 1% respectively. The rupee is trading at 46.68 to the US dollar.

Auto stocks have opened the day on a positive note. Gainers here include TVS Motor and Escorts. As per a leading business daily, Tata Motors plans to jointly develop engines and vehicles with its UK subsidiary, Jaguar Land Rover (JLR). The company hopes that the synergy will create substantial savings in its operations and that of its subsidiaries. Earlier, JLR had announced plans to increase sourcing of components from countries like China and India, in the coming years to reduce input costs. Tata Motors had acquired the two iconic brands from the US car giant Ford in 2008 for US$ 2.3 bn. It may be noted that Tata Motors had recently announced that it would invest about Rs 100 bn in the next two to three years on product development, facility modernisation and other capital expenditure in order to expand the company's domestic and global footprint.

Steel stocks have opened the day on a positive note. Gainers here include Tata Steel and JSW Steel. As per a leading business daily, the fertiliser ministry has turned down SAIL's Rs 700 bn proposal for setting up a steel plant and an urea manufacturing unit in the premises of a sick PSU in Jharkhand. The company proposed to set up a 12 m tonne (mt) steel plant at the closed premises of the Fertiliser Corporation of India in Sindri, Jharkhand. It also proposed to establish a 1.15 mt urea plant at the site. However, the fertiliser ministry first wants a firm commitment for setting up the fertiliser plant. It also wants SAIL to tie up with Rashtriya Chemicals And Fertilisers and National Fertilisers for the venture. It may be noted that the SAIL is working towards raising its annual steel production to 60 mt by 2020 from the current 14 mt.