After opening the day marginally higher, share markets in India continued the momentum and are presently trading in green. Sectoral indices are trading on a mixed note, with stocks in the IT sector and stocks in the energy sector witnessing maximum buying interest. While stocks in the metals sector are leading the losses.
The BSE Sensex is trading up by 95 points (up 0.3%) and the NSE Nifty is trading up by 38 points (up 0.4%). Meanwhile, the BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 64.81 to the US$.
In news from the oil and gas sector. According to a leading financial daily, the government is pulling out all stops in the impending HPCL-ONGC merger.
To ensure that the transfer of State-owned oil major HPCL’s promoter stake does not attract any anti-competitive norms, the government has exempted the merger of oil and gas PSUs from the purview of competition watchdog Competition Commission of India (CCI).
The relaxation will be available for a period of five years. A similar mechanism has been adopted for public sector banks, for 10 years.
The government, in July, had approved the sale of its 51.1% stake in oil refiner HPCL to India’s largest oil producer ONGC.
Prior to the merger, HPCL is likely to take over Mangalore Refinery and Petrochemicals (MRPL) to bring all the refining assets of ONGC under one unit. ONGC currently owns 71.6% of MRPL while HPCL has 16.9% stake in it.
ONGC will not have to make an open offer to minority shareholders of HPCL as the government’s holding is being transferred to another state-run firm and the ownership isn’t changing.
Reportedly, the deal will be completed within a year and will see HPCL will become a subsidiary of ONGC and remain a listed company post the acquisition.
