Sensex up 59 points as stocks open on firm note; Tata Steel gains 2.5%

Last Updated: Mon, Nov 26, 2012 04:25 hrs

Trading got off to a positive start on the Indian bourses this morning with investors tracking global cues and picking up select blue chip stocks from metal, information technology, oil and FMCG sectors.

A few stocks from capital goods, power and healthcare sectors are also trading higher. Bank, realty, automobile and PSu stocks are a bit subdued. Midcap and smallcap stocks have opened on a firm note.

The BSE benchmark Sensex, which advanced to 18,590.33, is currently up 58.71 points or 0.32% at 18,565.28. The Nifty index of the National Stock Exchange is up 12 points or 0.21% at 5638.60.

Tata Steel rallied to Rs 373, gaining nearly 2.5% in the process. The steelmaker has announced a restructuring plan that will lead to the loss of about 900 jobs in the UK. The company said that the job cuts are part of its restructuring proposals to improve the competitiveness of its UK operations so they can successfully perform in changing markets.

The company is proposing to make changes at a number of steel finishing and processing sites in the UK that would improve its product and service offering for customers.

However, Tata Steel said it would go ahead with a 250 million pounds investment to rebuild a second blast furnace at Port Talbot, which is expected to be in production in early 2013. The additional capacity will see the company restart a hot-strip rolling mill at its Llanwern site in Newport, South Wales.

Sterlite Industries is up 1.7% at Rs 103.50, Hindalco is trading 1.2% up at Rs 109.40 and Jindal Steel & Power is up with a gain of 0.6% at Rs 376.80, while Coal India is trading higher by about 0.5% at Rs 359.60.

Tata Power is up nearly 1.5%. Hindustan Unilever, Bharti Airtel, Larsen & Toubro, Wipro, Tata Motors, NTPC, Infosys, Reliance Industries, Dr Reddy's Laboratories, Hero Motocorp, Bajaj Auto and ONGC are also trading firm.

HCL Technologies, Asian Paints, Sesa Goa, Reliance Infrastructure, Jaiprakash Associates and Axis Bank are trading higher.

Ambuja Cements, Sun Pharmaceutical Industries, Ranbaxy Laboratories, Mahindra & Mahindra, HDFC, Cipla and Ultratech Cement are trading weak, losing 0.2% - 1% from their previous closing levels.

Jet Airways has vaulted nearly 12% to Rs 563 on huge volumes. On the National Stock Exchange, nearly 3.2 million shares have been traded so far at the Jet Airways counter this morning.

Eros International Media (up 10% at Rs 202), Karnataka Bank (up 2.2% at Rs 156) and United Spirits (up 3.3% at Rs 1943) have also moved up sharply on strong volumes this morning.

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