Metal stocks lead markets higher

Mon, 6 Sep 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened below the breakeven mark but soon moved into the positive territory. Other key Asian markets are in the green with Japan (up 1.5%) leading the pack of gainers. The US markets closed higher by 1.2% last Friday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with metal majors attracting investors' interest. The BSE-Sensex is trading higher by around 136 points, while the NSE-Nifty is up by about 40 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 1% and 1.1% respectively. The rupee is trading at 46.52 to the US dollar.

Energy stocks have opened the day on a strong note. Gainers here include Castrol and Gujarat Gas. As per a leading business daily, ONGC plans to market on its own the natural gas from its C-series field off the western coast. C-series is a marginal field located 60 km west of Daman in the Tapti Daman block of the Mumbai Offshore basin. It went to production last month. GAIL had sought the rights from the oil ministry to market the gas. But ONGC wants to earn the marketing margin on the gas instead of GAIL India taking advantage of it. It may be noted that GAIL already markets ONGC's gas from the Bombay High fields. When the administered price mechanism gas prices were revised earlier this year, the oil ministry had said that producers like ONGC can charge marketing margins if they supply to end users directly. However, the oil ministry has decided not to intervene in this case and has asked the two companies to decide between themselves.

Food stocks have opened the day on a positive note. Gainers here include VST Industries and Lakshmi Energy. As per a leading business daily, Britannia plans to invest Rs 450 m in its second Orissa unit on which it will start work soon. It expects to procure 10-12 acres of land for the facility in the next few weeks. It will have an installed capacity to produce about 2,500 tonnes of biscuit per month and will produce different varieties of biscuits mainly for the Orissa market. It presently has a 1,000 tonnes per month capacity biscuit unit in Orissa. The company plans to set up a similar unit in Bihar. The new facilities will help strengthen the company's presence in Eastern India and contribute to the overall business expansion across India. Presently, it has manufacturing facilities in Uttaranchal, Delhi, Chennai and Kolkata.