Indian share markets continued to trade in red during the noon session and were trading well below the dotted line amid disappointing earnings by corporates. Losses are largely seen in metal stocks, capital goods stocks and pharma stocks, while consumer durables stocks and software stocks traded in green.
The BSE Sensex is trading lower by 189 points and the NSE Nifty is trading higher by 49 points. Meanwhile, the BSE Mid Cap index is trading up by 0.3% & the BSE Small Cap index is up by 0.2%. The rupee is trading at 64.12 to the US$.
In news from mining sector, Vedanta has reported 44% rise in aluminium production in the April-June quarter. Total aluminium output in the quarter was 0.35 million tonnes despite pot outages at the company’s Jharsuguda smelting unit. The production hike came on the back of capacity ramp-ups at the Jharsuguda-II and Balco-II smelters.
The Balco-II smelter was ramped up and capitalised during the quarter. Aluminium production was flat quarter-on-quarter, as the continued ramp up at Jharsuguda-II and Balco-II was offset by lower production from the Jharsuguda-I smelter due to the pot outage in early April 2017.
Meanwhile, as per an article in The Economic Times, Vedanta has initiated talks with South India-based Deccan Gold Mines Ltd (DGML) to acquire a controlling stake in the company as it seeks to get a bigger foothold in the new segment of precious metal mining in the country.
Reportedly, Vedanta is negotiating to buy a 26% stake to begin with and that in turn will trigger an open offer, giving it the opportunity to get a controlling ownership.
Established in 2003, DGML is India’s first private sector gold exploration company and the sole gold exporter. The company has a large portfolio of exploration prospects in Karnataka and Andhra Pradesh. As many as 15 of its prospecting licence applications and three mining lease applications are awaiting approvals from government authorities.
