BSE-Sensex is currently trading up by about 89 points (up 0.31%), while the NSE-Nifty is higher by about 24 points (up 0.27%). Both BSE Mid Cap and BSE Small Cap indices have also opened the day in green, up by 0.42% and 0.65% respectively. The rupee was trading at Rs 62.22 to the dollar at the time of writing.
Power stocks have opened the day on a strong note. Jaiprakash Power and Neyveli Lignite are trading strong while KSK Energy has opened in the red. NTPC, India's largest power producer, is likely to invest close to US$10 bn over the next 5 years towards green energy projects. It has committed to set up 10,000 MW of renewable power projects giving a major fillip to government's plan of promoting clean energy. Currently, NTPC's renewable power portfolio generates 110 MW of power and thus the plans of scaling 10,000 MW over 5 years appear quite ambitious. Considering that 1 MW of solar power requires about Rs 60 m the company will have to entail huge capex if its renewable power plans are executed over the next 5 years.
PSU Banking stocks have opened the day on a mixed note. Punjab National Bank and UCO Bank are trading strong while Central Bank and Syndicate Bank are leading the pack of losers. As per news report, SBI is about to complete the due diligence process on its decision to grant a loan of Rs 62 bn to Adani's soon. The loan issue came under scanner as Adani's are believed to be close to PM Modi and the MoU between SBI and Adani's was signed when the PM was in Australia. The money borrowed via loan will be used to fund the capex of coal mine project in Australia. It would be interesting to see if the executive committee of SBI sanctions the loan or not.