Indian share markets continued to trade in the negative after opening on a weak note earlier today. Sectoral indices trade mixed with power and auto stocks being the top gainers and top losers respectively.
The BSE-Sensex is trading lower by 58 points and NSE-Nifty is trading lower by 19 points. However, BSE Mid Cap and BSE Small Cap indices are trading up by 0.3% and 0.6% respectively. The rupee is trading at 54.37 to the US dollar.
Power stocks are trading strong led by Adani Power and Tata Power. As per a leading daily, National Thermal Power Corporation (NTPC) has signed a Memorandum of Understanding (MoU) with the Ministry of Power to generate 242 billion units (BU) of power during the year. Mr Arup Roy Choudhury CMD, NTPC and Mr P Uma Shankar, Secretary Power signed the MOU on behalf of their respective organisations. The MoU also covers other ongoing projects and mines of NTPC. NTPC is targeting to produce 4 MMTPA coal from its captive mines this year. After this, its capacity will be increased by 1875 megawatt. Other parameters with respect to MOU inlcude financial performance related parameters, human resource, CSR & sustainability and R&D in line with guidelines of Department of Public Enterprises. NTPC will receive support from Power ministry in matters regarding commercial, fuel security and ash utilisation and land acquisition.
Energy stocks are trading mixed with Chennai Petroleum and Gujarat Gas leading the gains while Jindal Drill and Indraprastha Gas are witnessing maximum selling pressure. As per a leading daily, Gas Authority of India Limited (GAIL) is thinking of alternative legal options to resume work for its LNG pipeline project in Tamil Nadu. It may also approach Supreme Court for resolving the said issue. GAIL is planning to connect the state of Kerala with Karnataka via Tamil Nadu by starting a Rs 32 bn LNG pipeline project. However, Tamil Nadu government recently did not allow the project to proceed stating that such pipelines were being laid on agricultural land. The government suggested GAIL to lay these pipelines on roadsides along the national highways. As per GAIL, this is not allowed as per law and traffic movement would be disrupted if pipelines are laid on such highway connecting roads.