After continuously sliding to lower levels for most of the trading session, the Indian stock markets have recovered to some extent towards the end of the day, but continue to trade in the red. Among sectoral indices, the ones that are leading the losses include realty, capital goods and healthcare.
The Sensex today is down by around 161 points (0.56%), while the NSE-Nifty is down by around 51 points (0.58%). The correction in the midcap and smallcap stocks has been steeper with the S&P BSE Midcap and S&P BSE Smallcap indices trading lower by about 0.76% and 0.97% respectively. The rupee is currently trading at Rs 62.35 to the US dollar.
Engineering stocks are trading mainly in the red with Manugraph India, Alstom T&D and Voltas Ltd leading the losses. As per a press release published by state-run power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL), the company has commissioned the fourth 600 MW thermal unit. The unit has been commissioned at Jindal Power Ltd (JPL)'s OP Jindal Super Thermal Power Project (STPP) located at Tamnar in Raigarh district of Chhattisgarh. It must be noted that BHEL had commissioned three units of 600 MW aggregating to 1,800 MW capacity in Chhattisgarh in the last three months. With the commissioning of the fourth unit, the company has successfully commissioned the 4x600 MW OP Jindal Super Thermal Power Project (STPP) Extension in Chhattisgarh. BHEL's scope of work in the project included design, engineering, manufacture, supply, erection, testing and commissioning of steam turbines, generators and boilers, along with associated auxiliaries and electricals, besides state-of-the-art controls and instrumentation and electrostatic precipitators.
Oil & Gas stocks are trading mixed with moderate gains. However, downstream majors namely ONGC and Cairn India are trading with gains in excess of 3%. This is predominantly because of a 5% overnight jump in NYMEX crude prices. The prices jumped after US inventory build-up was slower than expected. Plus, speculations are rife that there might be a production cut by the oil producers this week. However, slowdown in China is one factor that can curtail the current rally. The Chinese economy has grown at its slowest pace in the last 6 years. This may slow demand growth and curb further appreciation from these levels.