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Following a negative trend since the opening of the trading day, the Indian indices have continued to remain under pressure in the post noon trading session. Sectoral indices are trading on a negative note with stocks from the oil & gas, telecom and energy sectors bearing the maximum brunt.
The BSE Sensex is trading lower by 145 (down 0.6%) and the NSE Nifty is trading down by 44 points (down 0.6%). The BSE Mid Cap index is trading down by 1.7% while the BSE Small Cap index is trading down by 3%. Gold prices, per 10 grams, are trading at Rs 26,006 levels. Silver price, per kilogram, is trading at Rs 33,919 levels. Crude oil is trading at Rs 1,949 per barrel. The rupee is trading at 67.66 to the US$.
Stocks in the power space are trading on a dismal note with Adani Power and RattanIndia Power leading the losses. As per an article in Economic Times, the Madhya Pradesh government has inked a pact with IFC, member of the World Bank Group, in order to set up a solar energy plant with a capacity of 750 MW (megawatt). The project is said to be the largest single site solar power project in the world. The project will be set up in Gurh tehsil of Rewa district over an area of 1,500 hectares. The estimated cost for the same is stated at Rs 45 billion.
For this, the Memorandum of Understanding (MoU) was signed between Madhya Pradesh Renewable Energy Development Corporation and IFC. Madhya Pradesh Urja Vika Nigam Limited (MPUVN) and the Solar Energy Corporation of India have created a joint venture company named Rewa Ultra-Mega Solar Power Limited to implement the project. In order to structure and implement the transaction, IFC will extend its global expertise to attract private investments of about US$ 750 million.
Meanwhile, on a separate note, Hindustan Petroleum Corporation Ltd (HPCL) has received the environmental clearance to expand its refinery at Visakhapatnam in Andhra Pradesh from 8.33 MTPA (million tonne per annum) to 15 MTPA. This comes as the Expert Appraisal Committee (EAC) in its meeting held last month cleared the Rs 184 billion expansion plan which was rejected in 2013 earlier in some parts of Visakhapatnam. Scrip of HPCL is trading down by 3.3%.
Telecom stocks are trading on a negative note with AGC Networks and Himachal Futuristic witnessing maximum selling pressure. As per an economic daily, Cellular Operators Associaton of India (COAI) stated that GSM mobile operators added 64.9 lakh subscribers during the month of December. This took their overall base to 755 million.
Bharti Airtel added 25.10 lakh subscribers in the month of December to take its overall base to 243 million with a market share of 32.2%. Vodafone added 16.50 lakh users and its base increased to 193 million with 25.6% market share whereas Idea Cellular added 12.48 lakh subscribers (subscription required) to take its overall base to 172 million with 22.7% market share. Aircel added 6.14 lakh subscribers and its base increased to 85 million with market share of 11.3% whereas Telenor added 12.79 lakh users to take its base to 50 million with 6.7% market share. State-run MTNL added 5,194 subscribers to take its base to 35.27 lakh. However, Videocon lost 8.15 lakh subscribers and its base reduced to 69.58 lakh.
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