Indian stock market indices erased early losses over the last two hours of trade and are now trading in the green. Banking and IT stocks witnessed maximum buying interest, while Oil and Gas and Metal stocks witnessed maximum selling pressure.
Steel stocks are trading in the red led by Jindal Steel and Jindal Saw. According to a leading financial daily, Tata Steel and Steel Authority of India (SAIL) have increased prices of steel products. Tata Steel has increased prices of its long products by about Rs 1,000 per metric tonne. SAIL on the other hand has increased prices of long products by Rs 500-1,000 a tonne. This is the second such hike in maximum recommended retail price (MRRP) in the past three months. Earlier, the company had increased prices in October 2011, after a long gap of around 10 months. Both the companies have citied an increase in demand for long products as the reason for hike in prices.
Power stocks are trading weak led by PTC India and Power Grid Corporation. According to a leading financial daily, National Thermal Power Corporation (NTPC) is poised to start trial runs for its 500 mega watt (MW) unit II of phase II of 1,000 MW thermal power plant coming up at Simhadri in Andhra Pradesh later this month. This will immensely benefit the power starved state, which is facing acute shortage of power in recent times, with industries faced with two-day power holidays. The company is planning to set up a 4,000 MW ultra mega power project (UMPP) at Pudimadaka near Visakhapatnam in Andhra Pradesh. The company has also sought early clearances for the proposed project and allocation of coal from the State-owned Singareni Collieries Company Ltd (SCCL) both to meet the coal shortage for its plant at Simhadri in the near term and for new projects in the long term. NTPC is also making arrangement for coal from Australian mines through the Adanis.