Indian indices shed some of their opening gains during the previous two hours of trade. However, they still continue to trade in the positive territory. Buying interest is seen in almost all sectors with realty, auto and IT stocks attracting the maximum investor interest. However, stocks in FMCG and banking space are trading in the red.
BSE-Sensex is trading higher by 52 points while NSE-Nifty is trading 19 points above the dotted line. BSE-Midcap Index is up by 0.5% while the BSE-Smallcap index is trading 0.9% above yesterday's closing. The rupee is trading at 44.27 to the US dollar
As per a leading financial daily, NTPC and Coal India have signed an agreement for setting up two 2,000 MW coal based power projects in Jharkhand under a 50:50 joint venture. The investment required for these projects is estimated at Rs 160 bn. The power plants are to be set up at the Brahmini and Chichro Patsimla coal mines which have a total coal extraction potential between 1.5 to 2 bn tonnes per annum. This is considered sufficient to run the two power plants. NTPC is also considering using the surplus dry fuel from these mines at its other power plants. With this new investment, we can expect better capacity utilisation from NTPC in the coming fiscal.
Two new Nano cars catching fire in less than a month has driven Tata Motors to initiate firefighting measures. The company's chairman Mr. Ratan Tata is personally monitoring the case. A core team of engineers and technicians has been formed to identify the problem and find a solution for it by the end of the month. While the company has yet to make any public statement on the issue to reassure its customers, the concern is that the low cost of the car may have forced vendors to compromise on the quality of the product.
However, according to the company's dealers the fire incidence has not impacted the demand of the car. Tata Motors has sold more than 30,000 Nanos till date. The current capacity of the company is 48,000 units per annum. However, the trial run at the new facility in Sanand in Gujarat has stated. With this new facility coming online, the production capacity of the company is expected to increase to 0.25 m units per annum. With an increase in capacity and new competitors, the company will have to resolve the issue soon.