After opening the day on a positive note, Indian markets have given up the early gains and are trading around the dotted line. Sectoral Indices are trading mixed. Realty and Consumer Durables stocks are the leading losers while IT and Capital goods stocks are witnessing the largest buying activity.
Power stocks are trading mixed today. PTC India Ltd and Jaiprakash Power are the leading gainers while Reliance Power and NHPC are trading the weakest. According to a leading financial daily, four companies, including state-run Power Grid Corporation of India have bid for two transmission projects, Gadarwara A and B worth Rs 60 bn even as seven other companies pulled out of the bids after showing interest. The four companies to bid for these projects were PGCIL, Essel Infra, Sterlite Grid and Adani Group. The Gadarwara A and B transmission lines would primarily be used to evacuate electricity generated at NTPC's power plant at Gadarwara in Narsinghpur district in Madhya Pradesh. As per the Industry sources, some of the other bidders pulled out anticipating aggressive bids by Power Grid, which bid 40-70% lower and bagged two projects last year - Unchahar Transmission and transmission projects under Northern Region Strengthening System for the northern grid. Power Grid's aggressive bids have not only discouraged serious Indian infrastructure companies but also kept foreign investors away.
Majority of the PSU Banking stocks are trading negative with Indian Overseas Bank and Canara Bank trading the weakest. According to a leading financial daily, State Bank of India (SBI) will provide finance totaling Rs 1 bn benefiting 3,000 small tea growers in the North East soon. Reportedly, finance will be provided to tea growers who have proper basic documents of their existing garden as per Tea Board of India norms. The finance will be for all sections of small growers to establish mini-bought tea leaf factories and buying vehicles for transporting green leaves.