Indian share markets built on initial gains and continued to trade positively during the last two hours of trade. Sectoral indices are mostly trading firm led by realty and auto stocks.
The BSE-Sensex is trading higher by 94 points and NSE-Nifty is trading up by 26 points. BSE Mid Cap and BSE Small Cap indices are trading up by 0.3% and 0.4% respectively. The rupee is trading at 53.04 to the US dollar.
Power stocks are trading mostly in the red led by Satluj Jal Vidyut and Tata Power. According to a leading daily, the distribution arm of Tata Powers is seeking revision in tariffs. With the same objective in mind, it has approached the Maharashtra Electricity Regulatory Commission (MERC) to increase existing average tariff over a period of next three years. They are suggesting revision of existing tariff of Rs 5.97 per unit to Rs 6.75 per unit for 2013-14, Rs 7.39 per unit for 2014-15 and Rs 8.05 per unit for 2015-16 at a rate of 10.46% annually. We may note here that this hike has become necessary due to rise in fuel prices. Also, the power company has not effected any price hikes in last 3 years despite costs incurred towards developing Tata Power's own last mile Low Tension (LT) network in Mumbai and incurrence of wheeling charges.
Automobile stocks are trading firm led by Tata Motors and Ashok Leyland. As per a leading daily, Hero MotoCorp posted highest ever monthly sales in the month of January. The sales have grown by 7.21% from 5,20,272 units in January 2012 to 5,57,797 units in January this year. This is on the back of good response towards their new motorcycle launches like Ignitor and Passion X-Pro. Also, the scooter segment especially Pleasure and Maestro are outperforming the industry. We may note here that earlier in May 2012, the company had recorded sales of 5,56,644 units which was so far the highest sales figure. In the meanwhile, Hero has begun construction of its 4th manufacturing plant and the Global Parts Centre at Neemrana in Rajasthan. The two-wheeler company plans to invest Rs 5.5 bn towards these facilities.