Indian stock markets have shed initial gains and are hovering around the dotted line in the post noon trading session. Sectoral indices are trading mixed, with stocks from the IT and realty sectors leading the pack of gainers while oil and gas and power sector stocks are witnessing maximum selling pressure.
Most of the mining stocks are trading in the green with Hindustan Zinc and Gujarat NRE leading the gainers. As per a financial daily, Coal India Ltd (CIL) and National Thermal Power Corporation (NTPC) may soon end their year old fight, on pricing of the coal supplied and the quality of coal provided by Coal India to the latter's power plants. Both the companies have decided to adopt a common method of calculating price, which will depend on the amount of heat that can be generated by burning a particular quantity of coal. The third party will conduct the sampling of the fuel. Reportedly, the differences between both the companies came to an end after the chairman of CIL S Narsing Rao and Chief Managing director of NTPC, Arup Roy Choudhury, met Coal Secretary Sanjay Kumar to resolve the issues. As the differences between both the companies are sorted out, CIL will ensure supplying the required quantity of coal to NTPC, which faces fuel shortages. The shares of NTPC and CIL were trading down by 1.3% and 0.05% respectively.
Majority of the telecom stocks are trading in the green with ADC India and Reliance Communications leading the gains. As per a leading financial daily, the Supreme Court has given a ruling that telecom companies Bharti Airtel, Idea Cellular and Vodafone cannot add new 3G customers until further notice. As per the court's ruling, Bharti Airtel can continue serving existing customers but cannot add new customers in the seven circles. Earlier on March 15, the Department of Telecommunications (DoT) had restrained Bharti Airtel from providing 3G intra-circle roaming facilities in seven circles where it did not hold spectrum licenses. DoT had also imposed a penalty of Rs 3.5 bn on the company for violation of license terms and conditions. The final verdict on the 3G spectrum case is likely to come by May 9. While Bharti Airtel stock is down 2.6%, Idea Cellular is trading down 0.8%.