Taking cues from their peers across Asia, the indices in Indian stock markets opened lower and languished in the red for a larger part of the trading session. This was despite some sporadic attempts to make inroads into the positive territory. Commodity stocks led by Jindal Steel, ACC and Ambuja Cements led the pack of losers. While the BSE-Sensex closed lower by around 44 points, the NSE-Nifty closed lower by around 17 points. The BSE Mid Cap and the BSE Small Cap, were not spared however as they closed marginally in the negative.
As regards global markets, Asian indices across the board closed lower today while most European indices have opened in the red. The rupee was trading at Rs 51.5 to the dollar at the time of writing.
The stock of Elecon Engineering has been in favour after winning some major orders during the month of March, 2012. The company has received some major orders worth Rs 226 m from various clients for supply of material handling equipments and spares for their various projects. Elecon Engineering is a market leader in the domestic gears segment with around 25% market share in the domestic transmission equipment segment. Being part of the Elecon group that largely focuses on the engineering sector adds to the operational strength to EECL in terms of sourcing some of the inputs like castings from the group company and outsourcing some portion of job-work to the group company.
Hindalco Industries' group unit - Aditya Aluminium - has lined up Rs 100 bn expansion plan to ramp up capacity of its aluminium smelter and captive power plant (CPP) proposed at Jharsuguda in western Orissa. The aluminium company intends to double smelter capacity from 0.36 m tonne per annum (mtpa) to 0.72 mtpa and scale up CPP capacity from 900 MW to 1650 MW.
Hindalco is currently undergoing major expansion programmes which will treble its aluminium refining and smelting capacity in the next 3 to 4 years. The huge capacity addition with raw material linkage will help the company reduce cost of production and increase volumes at the same time. Considering the demand for aluminium is expected to grow at 6% to 8% per annum in view of the low per capita consumption in India, the capacity additions undertaken by the company will enable them to meet the growing demand.