The Indian equity market gained ground on Tuesday after a weak start. The primary market continues to enjoy good momentum with smart listing for Thyrocare and a decent close by Ujjivan Financial Services. Benchmarks indices too extended winning streak to second consecutive trading session led by gains in the capital goods, banking, IT, realty and consumer durables. Even the mid cap and small cap stocks ended with marginal gains. On the other hand, metals, oil & gas, power and utilities stocks were under pressure. Nifty closed with a a gain of 22 points at 7,888while Sensex ended with a gain of 84 points at 25,773.
In the global markets, most of the Asian indices closed the day on a positive note. The Hong Kong’s Hang Seng ended higher by 0.43%, while Japan’s Nikkei 225 ended higher by 2.15%. The European indices also witnessed buying interest. The FTSE 100 was up 0.77%, France’s CAC 40 was up 1.09% and Germany’s DAX was up 1.13%. The rupee was trading at Rs 66.61 to the dollar at the time of writing.
Stocks in the steel sector ended the day on a mixed note with Adhunik Metaliks and Bhushan Steel leading the gains. As per a leading financial daily, Tata Steel has received seven expressions of interest (EoI) to acquire the firm’s loss-making UK business. According to the company, all of these seven EoI have been immediately taken forward to the next stage of the sales process, which involves inputs from the UK government.
Tata Steel UK’s assets include Port Talbot plant in south Wales, UK’s largest with around 4,000 workers, as well as sites at Newport, and Rotherham.
Last month Tata Steel sold its Long Products business in Europe to investment firm Greybull Capital. The sale was in exchange for Greybull Capital taking the whole of the business, including assets and relevant liabilities, and securing funding package of 400 million pounds.
It shall be noted that on 29 March, Tata Steel decided to sell its UK operations, called Tata Steel Europe Ltd. This came as the company failed to turn around the business it bought as part of the takeover of Corus at the height of the commodity boom in 2007 for US$12.1 billion. The business suffered almost a decade of losses amid poor demand and cheap Chinese imports.
Moving to the news from the FMCG space. ITCis gradually resuming production at its cigarette factories, which was suspended from May 4 over the large pictorial warning issue.
Tata Motors is India’s largest automobile company. Through subsidiaries and associate companies, the company has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Stock of the company closed down by 3.6%.
USDINR trade today trading down 4 paise at 66.62 per US dollar.
Out of 1,404 stocks traded on the NSE, 683 declined and 648 advanced today.
Top 5 Nifty Gainers: NTPC (1.85%), Axis Bank (1.51%), Tata Steel (0.69%), Asian Paints (0.51%), and Hero MotoCorp (0.42%).
Top 5 Nifty Losers: Bharti Airtel (-1.84%), Adani Ports & Sez (-1.64%), Coal India (-1.40%), BHEL (-1.24%), HDFC (-1.21%)
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