Power stocks are trading weak led by Reliance Power and Tata Power. According to a leading financial daily, NTPC is planning to invest 20% less in FY13 as compared to FY12. Most of the new investment next fiscal would be to add new capacity of about 4000 mega watt (MW). According to the Budget documents, NTPC's internal resource mobilisation would be Rs 210 bn in 2012-13. NTPC also plans to increase its generation capacity from the current 36,000 MW to 66,000 MW by the end of the 12th plan. Besides, it plans to foray into power distribution and also spruce up mine development to start coal production next year. It is also exploring opportunities for acquisition of stakes in coal mines in Indonesia, Mozambique and Australia.
Banking stocks are trading strong led by Dena Bank and UCO Bank. According to a leading financial daily, State Bank of India (SBI) has decided to allow old home loan borrowers to switch over to the new floating rates that are lower. Borrowers who have taken loans linked to SBAR (State Bank Advance Rate or the prime lending rate) are paying as much as 2-3% more than existing floating rates that are linked to the Base Rate. This is because the Base Rate is lower than the SBAR. SBI's Base Rate is currently at 10%, while the SBAR is 14.75%. Besides, the bank has also reduced the spread it charges over the Base Rate for home loans. Because of this, new home loan rates have come down. For switching over, the only condition is that the customer should not be a defaulter. If so, then he or she can pay the default amount and switch.