Indian stock markets recovered losses to some extent over last two hours though are still trading in the red. Amongst the sectors, stocks from power and realty witnessed maximum gains while Energy stocks and metal stocks were leading the losers.
The BSE-Sensex is trading down by 104 points and NSE-Nifty is trading down by 33.2 points. However, BSE Mid cap and BSE Small cap indices are trading up by 0.5% and 0.7% respectively. The rupee is trading at 49.45 to the US dollar.
Power stocks are mainly trading in the green with PTC India Ltd and Neyveli Lignite leading the gainers. As per a leading financial daily, National Thermal Power Corporation (NTPC) plan to set up a 2x800 Megawatt (MW) coal based super thermal power plant in Orissa has taken a setback on environmental concerns. The Environment and Forest Ministry (MoEF) has refused to give the project a clearance. The project had already been facing opposition from locals on land acquisition issues. As per the Committee under MoEF, the project will require acquisition of forests and grazing land. NTPC now will have to formulate some terms for wildlife conservation in consultation with the wild life department at the earliest .The Committee has also suggested NTPC to acquire a grazing land of equivalent area and to develop and upgrade it. The stock was trading in the green.
Majority of the telecom stocks are trading in red. As per a leading financial daily, the government announced the new telecom policy. According to the new policy, the prescribed limit on spectrum allocated to service providers has been raised from the present 6.2 MHz of spectrum to 2X8 MHz (paired spectrum) for GSM technology for all service areas. In Delhi and Mumbai, the prescribed limit has been raised to 2X10 MHz (paired spectrum) for GSM technology. This is likely to benefit subscribers in the form of better quality services at economical rates. Additionally, the policy announced a uniform licence fee of 8% compared to the current range of 6-8% of Adjusted Gross Revenue (AGR) paid by operators annually. Besides the policy provided allowance for 35% market share in case of mergers paving way towards a liberal merger and acquisition regime in the industry.