Indian stock markets indices are trading weak over the last two hours of trade. Metal and Auto stocks witnessed maximum selling pressure while power and pharma stocks witnessed maximum buying interest.
The BSE-Sensex is down by 134 points, while the NSE-Nifty is down 39 points. BSE Mid Cap index is down by 0.04% while the BSE Small Cap index is up by 0.76% respectively. The rupee is trading at 52.90 to the US dollar.
Power stocks are trading strong led by Reliance Power and Neyveli Lignite. According to a leading financial daily, National Thermal Power Corporation (NTPC) is planning to enter into power distribution business across the country. The company is in early stages of internal discussion and is exploring the option whether to enter the power distribution business through a license route or franchise route. Entering into new stream of business will be done through its wholly-owned subsidiary NTPC Electric Supply Company Ltd (NESCL). The company has been planning to enter the power distribution segment for quite some time but did not have any success earlier. It had earlier proposed to set up distribution networks in Kanpur, Patna and Mangalore among others, but the plan could not materialize. However, no investment has been earmarked for the new venture.
Hotel stocks are trading mixed today. While Oriental Hotels and Country Club are in the green, Indian Hotels and EIH are trading weak. As per a leading daily, Indian Hotels' Taj Group is likely to announce a new brand soon. The new brand will be a category between their Gateway and Ginger range of hotels. It may be noted here that Ginger is a chain of budget hotels with room rates of Rs 2500 while average room rates for Gateway are Rs 5000- Rs 7000. Gateway range has not taken off well. In the wake of international brands venturing into the Indian hospitality space, the Indian hotel companies like Indian Hotels and ITC are ramping up their products.