Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Metal stocks lead the rally
Wed, 2 Jan 11:30 am

Indian equity markets have continued to trade strong over the previous two hours of trade. Metal and consumer durables stocks witnessed maximum buying interest while FMCG stocks witnessed maximum selling pressure.

The Sensex today is up by 154 points, while the NSE-Nifty today is up by 49 points. BSE Mid Cap index and the BSE Small Cap index are up by 0.75% and 0.97%. The rupee is trading at 54.45 to the US dollar.

Mining stocks are trading strong led by Sesa Goa and Guj NRE Coke. According to a leading financial daily, the government's decision to put 8.5 billion tonne (bt) coal reserves up for auction has kicked off a frantic rush among companies, including Coal India and National Thermal Power Corporation (NTPC), scrambling to grab the natural resource. These firms are lured by the Deocha Pachami block in West Bengal's Birbhum district which is the country's largest thermal coal block with over 2 bn tonne reserves. Earlier, National Mineral Development Corporation (NMDC) was seeking the block's allocation for the past three years. It had chalked out a Rs 100 bn plan to develop the block in a joint venture with Coal India. But now Coal India wants to exploit the reserves alone.

Aluminium stocks are trading in the green led by Hindalco and National Aluminium Company Ltd. (NALCO). According to a leading financial daily, a joint venture between Nalco and Nuclear Power Corporation of India Limited (NPCIL) called NPCIL- Nalco Power Company Limited which was formed to set up nuclear plants is planning to raise a term loan of up to Rs 15 bn over the next three months to fund the construction of power generation capacities. According to the joint venture agreement, Nalco currently holds 26% stake in the company with an option of taking it up to 49%. The rest is with NPCIL. The joint venture is exploring other options such as a bond issue or external commercial borrowings (ECBs) as well. The companies are yet to decide on the quantum of the bond or ECB issue. Since the earnings of the power plants will be in Indian rupees, the two will have to set up a hedging mechanism in case of ECB borrowings. Nalco-NPCIL joined hands to build nuclear power plants in March last year. The power plants are coming up in Surat, Gujarat.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Metal stocks lead the rally". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.