Indian stock markets indices are trading weak over the last two hours of trade on back of heavy selling activity witnessed across industry heavyweights. Capital goods and banking stocks witnessed maximum selling pressure.
Power stocks are trading weak led by PTC India and NHPC. According to a leading financial daily, National Thermal Power Corporation (NTPC) has signed a USD $1.5 bn deal with Bangladesh's state owned Power Development Board (PDB) to build a 1,320 MW coal fired power plant. This will be Bangladesh's biggest ever power plant and will help the country in reducing acute power shortages. Both the companies have struck a 50-50 joint venture deal. Of the total project cost, 70% will be arranged through loans and the rest will be equally shared between the JV partners. Coal will be imported to run the plant from Indonesia, Australia and South Africa.
Auto stocks are trading mixed today. Gains are led by Mah. Scooters and Ashok Leyland However, Force Motors and Tata Motors (Telco) are on the losing end. As per a leading daily, Mahindra & Mahindra Ltd. (M&M)'s Ssangyong is looking at making India its manufacturing and export base. The company plans to invest US$ 1.2 bn over the next 3-5 years. This will be used towards launching 4 new products and their variants. Ssangyong will soon be manufacturing and exporting smaller compact and sub-compact sports utility vehicles from its assembly plant near Pune. Ssangyong's plans are in line with other automakers who want to benefit out of low cost of production in India.