The benchmark indices in the Indian stock market continued to trade in the red in the last two hours of the trade. Stocks from the IT space are trading weak, while those from Capital goods space are trading firm.
The BSE-Sensex is down by 267 points while NSE-Nifty is trading 77 points below the dotted line. BSE Midcap index is down by 0.2%, while BSE Small cap is trading flat. The rupee is trading at 44.47 to the US dollar.
Engineering stocks are trading mixed with Emco, Finolex Cables and Havells India leading the pack of gainers. The stocks of Suzlon, Siemens and Everest Kanto Cylinder are trading in the red. As per a leading financial daily, Engineering major L&T is planning to sell its Electrical and Electronics business. This division deals with manufacturing products like switch gears, air circuit breakers, circuit breakers and switch boards. It constitutes around 7% of the total revenues and has contributed to an EBITDA margin of 11% for the first nine months. The move is a part of the company’s ongoing restructuring plans. As per some unnamed sources aware of the developments in the company, the board of the company approved the move on Wednesday this week. The company is now pursuing talks with several other companies in this regard. One of them is U.S based Schneider Electric. The management has declined to comment on the development.
Most of the Power stocks are trading in the red with GVK power and PTC India leading the pack of losers. However, Torrent Power and Coal India are trading firm. As per a leading financial daily, NTPC has issued Rs 26 bn global tender for power generation equipment. The equipment will be used for expansion of its existing combined cycle plant at Kawas in Gujarat from 656 MW to 1,300 MW. The company is likely to finance the project through external commercial borrowings and internal resources. Besides, it is expected to call bids for expansion of its project at Gandhar in Gujarat within a month to 1,300 MW. Each of these projects qualifies under Government’s mega power policy. The supplied equipment will qualify for fiscal benefits.
The company is in a legal dispute with Reliance Industries over gas supply for these two projects in Gujarat. The company has decided to deal with the legal case later and go ahead with the projects. It has received assurance for interim gas supply from the Government. It expects to receive the gas supply by the time of completion of bid evaluation process.