Indian stock markets continue in green

Wed, 7 Dec 01:30 pm

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The Indian stock market continued to trade firm on account of sustained buying interest in heavyweights during the last two hours of trade. Stocks from the software, FMCG, auto and realty sectors are leading the pack of gainers while those from healthcare and consumer durables are trading weak.

The BSE-Sensex is trading up by 128 points while NSE-Nifty is trading 37 points above Monday's closing. The BSE Mid Cap and BSE Small Cap indices are trading up by 0.3% and 0.4% respectively. The rupee is trading at 51.42 to the US dollar.

Public sector unit (PSU) stocks have been trading mixed with Steel Authority of India Ltd (SAIL>), State Bank of India (SBI) and United Bank of India (UBI) leading the pack of gainers. However, Coal India and Bharat Petroleum Corporation Ltd (BPCL) are trading weak. As per a leading financial daily, the Indian Government will seek Indonesia's cooperation to get 'special status' for Indian companies in the grants of coal blocks. The move intends to bridge the demand supply gap for coal back home. As per an official document, a team from Coal Ministry and Coal India Limited will be sent to Indonesia to seek the allocation of large greenfield coal concessions on a nomination basis. Besides, the ministry will also press on the need for expeditious environmental and forest clearances along with smooth land acquisition. In a separate news, Coal India has announced that it has zeroed in on two overseas coal assets, one of which is in Indonesia. The company expects to begin a serious dialogue with the owners soon. It has marked funds worth Rs 60 bn for mine acquisitions.

Energy stocks have been trading in the green with Cairn India, Oil and Natural Gas Corporation (ONGC) and Gujarat State Petronet leading the pack of gainers. However, Petronet LNG and Indraprastha Gas are trading weak. As per a leading financial daily, Kerala State Industrial Development Corporation (KSIDC) and Gail Gas, a subsidiary of Gas Authority of India Ltd (GAIL) have formed a joint venture for a supplementary gas infrastructure project in Kerala. The project aims to promote city gas distribution projects, setting up of CNG stations for Kerala State Road Transport Corporation (KSRTC) buses and boat services, marketing of gas related equipment and setting up of captive gas based power plants. The CNG stations will be set up in Kochi first as natural gas is expected to available there in a year's time. The project is estimated to cost around Rs 20 bn. In the JV, while KSIDC will have 24% stake, both GAIL and Kerala Gail Gas Ltd (KGGL) will have a combined stake of 26%. Rest of the shares will be offered to financial institutions and strategic investors. The stock of GAIL is trading in the green.