Key indices were trading with small gains in mid-morning trade amid mixed Asian cues. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 46.56 points or 0.16% at 29,753.17. The Nifty 50 index was up 19.80 points or 0.22% at 9,218.10. The movement of indices was restricted within a small range near the flat line amid lacklustre trade so far during the session. Capital goods and metal stocks gained.
The BSE Mid-Cap index was up 0.33%. The BSE Small-Cap index was up 0.52%. Both these indices outperformed the Sensex's gains in percentage terms.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,728 shares rose and 786 shares fell. A total of 110 shares were unchanged.
Coal India, Tata Motors and Axis Bank rose by 0.91% to 1.39%.
Metal & mining stocks gained on renewed buying. JSW Steel (up 1.63%), Hindustan Copper (up 1.71%), Vedanta (up 0.04%), Hindalco Industries (up 0.28%), Hindustan Zinc (up 0.9%), Tata Steel (up 0.3%), Steel Authority of India (Sail) (up 0.53%), National Aluminum Company (up 1.29%) and NMDC (up 0.26%) gained. Jindal Steel & Power declined 1.55%.
Bhushan Steel jumped 5.22% on media report that the company submitted final proposal for corporate debt restructuring programme. Bhushan Steel last month submitted final proposal for debt restructuring under the Reserve Bank of India (RBI)'s S4A scheme. S4A, or Scheme for Sustainable Structuring of Stressed Assets, was unveiled by RBI last year to make debt recasts easier.
Bhushan Steel has been in financial distress recently. State Bank of India and Punjab National Bank lead two groups of creditor banks to Bhushan Steel. As of 2015-2016, the steel maker had Rs 44477.90 crore debt on books with Rs 10000 crore being added in past three years as interest and penal interest, reports added.
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Under S4A scheme, banks need to establish by a process that involves a forensic audit that the promoters are clean and not involved in any activity of malfeasance. S4A cannot be implemented if the audit report suggests problem with the promoters. In such cases where wrong doing is seen on the part of promoters, the S4A can be implemented only when there is a change in ownership.
Capital goods stocks also gained. Bharat Heavy Electricals (Bhel) (up 0.89%), BEML (up 1.57%), ABB India (up 5.65%), Bharat Electronics (up 1.64%), Thermax (up 0.06%), and Siemens (up 0.69%) gained.
L&T advanced 0.19% amid volatility after the company said the power transmission and distribution business of L&T Construction has won its single largest order in the Middle East from their esteemed customer 'Kahramaa' - Qatar General Electricity & Water Corporation - for its ongoing Qatar Electricity Transmission Network Expansion Plan-Phase XIII. Through this ambitious project, Kahramaa intends to expand the existing power transmission network to meet the ever-increasing demand for power due to the developmental works in Qatar. The announcement was made before trading hours today, 10 April 2017.
The prestigious $817 million order will involve the engineering, procurement and construction of 30 new substations of varying voltage levels of 220 kilovolt (kV), 132 kV and 66 kV and approximately 560 kilometre (km) of 132 kV and 66 kV underground cables under various definite and framework packages.
The works of the project are spread all over the State of Qatar including both freshly developed as well as already developed areas. The project is scheduled for completion in phases from 15 to 32 months.
Meanwhile, L&T's board at a meeting held on Friday, 7 April 2017, approved appointment of A. M. Naik as the Non-Executive Chairman of the company with effect from 1 October 2017 for a period of three years, immediately upon his retirement as the Executive Chairman on 30 September 2017.
The board also approved appointment of S. N. Subrahmanyan as the Chief Executive Officer & Managing Director with effect from 1 July 2017. The announcement was made after market hours on Friday, 7 April 2017.
Apollo Tyres rose 1.9% after the company announced inauguration of the company's sixth global tyre manufacturing unit and the second one in Europe. Located less than 100 km from the capital Budapest, it is the company's first greenfield facility outside India. Built over 72 hectares, construction began on site in April 2015.
Apollo Tyres is investing Euro 475 million in this facility. The final capacity at the end of phase I would be 5.5 million passenger car & light truck (PCLT) tyres and 675,000 commercial vehicle tyres. This facility will complement Apollo Tyres' existing facility in the Netherlands, and will produce both Apollo and Vredestein brand of tyres for the European market. The announcement was made after market hours on Friday, 7 April 2017.
Overseas, Asian stocks were mixed as caution prevailed as increased geopolitical risks prompted investors to favour safe-haven bets such as government debt. Top aides to US President Donald Trump differed on Sunday, 9 April 2017. on where US policy on Syria was headed after last week's attack on a Syrian air base, while US Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea.
On economic data front in Asia, Japan's current account surplus stood at 2.81 trillion yen ($25.26 billion) in February, finance ministry data showed, the biggest surplus since March 2016. The result is the 32nd straight month of current account surpluses. This February's current account surplus was the largest on record for February.
US stocks closed with small losses on Friday, 7 April 2017, after increased geopolitical concerns amid US air strikes against Syria and weaker than expected nonfarm payrolls data weighed on sentiment. The Bureau of Labor Statistics reported Friday, 7 April 2017, nonfarm payrolls grew by just 98,000 in March, well below expectations, but the unemployment rate fell to a 10-year low of 4.5%.
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