Sensex Trades In Green; Metal Stocks Lead Gains

After opening the day in green, share markets in India have continued the momentum and are presently trading above the dotted line. Sectoral indices are trading on a positive note, with stocks in the metals sector and stocks in the FMCG sector witnessing maximum buying interest.

The BSE Sensex is trading up by 103 points (up 0.3%) and the NSE Nifty is trading up 40 points (up 0.4%). Meanwhile, the BSE Mid Cap index is trading up by 0.4%, while the BSE Small Cap index is trading up by 0.7%. The rupee is trading at 65.11 to the US$.

In news from stocks in the capital goods sector. Larsen & Toubro (L&T) share price is in focus today after the company announced the sale of unlisted subsidiary EWAC Alloys Ltd as part of its strategy to exit non-core businesses.

The engineering major said that it has entered into an agreement with ESAB Holdings Ltd, an UK based company, to sell EWAC Alloys for a consideration of Rs 5.2 billion.

EWAC Alloys is a wholly owned subsidiary of L&T and the company is divesting its entire stake in the company.

EWAC makes welding products and provides related services. The company, which began as a joint venture of Larsen & Toubro and Germany-based Messer Eutectic Castolin Group, became a wholly owned subsidiary of L&T in 2011.

L&T said EWAC had a revenue of Rs 2.1 billion in fiscal 2017, representing around 0.2% of the L&T group’s consolidated revenue.

The sale is in line with L&T’s strategy to exit non-core businesses to improve efficiency. In August, L&T sold its entire stake in another unlisted subsidiary, L&T Cutting Tools Ltd to IMC International Metalworking Companies BV, owned by Berkshire Hathaway, for Rs 1.7 billion.

At the time of writing, L&T share price was trading up by 0.6%.

Moving on to news from the economy. Direct tax collections for the six months from April – September rose over 16% year on year (yoy).