In the last 2 hours of trade the markets saw an increase in buying activity, particularly in the index heavy weights, as investors returned to the markets. While stocks in the realty and consumer durables space saw investor interest, profit booking was seen in stocks from the IT and FMCG space.
The BSE-Sensex is trading higher by 75 points while the NSE-Nifty is trading 25 points above the dotted line. The BSE-Midcap Index is up by 0.8% while the BSE-Smallcap index is trading 1.3% above yesterday's closing. The rupee is trading at 44.62 to the US dollar.
As per a leading daily, NTPC plans to set up at least three 4,000 MW power projects through tie-ups with state governments. As of now the three plants will be built at Chhattisgarh, Karnataka and Madhya Pradesh. NTPC has already placed bulk orders for equipment for the Chhattisgarh and Karnataka plants while it is conducting feasibility studies for the Madhya Pradesh plant. The company in fact plans to start construction of the Madhya Pradesh plant by the end of the year. These three plants will require 60 MT of coal annually. Coal linkages are already in place for the Chhattisgarh and Karnataka plants and the company has asked the power ministry for coal linkage for the Madhya Pradesh plants. NTPC currently has a capacity of 31,704 MW and plans to take this up to 75,000 MW by the end of the 12th plan. Even with these new plants, the company will have to grow aggressively to achieving its target by 2017.
Petronet LNG announced its 4QFY10 results yesterday. The company's topline fell by 10% YoY on the back of lower realizations in spite of higher volume sales. Petronet's bottomline declined by 52% YoY on the back of lower operating income as a result of higher raw material costs as a percentage of sales and increase in interest and depreciation costs. While domestic supply of natural gas is increasing and imported LNG is a more expensive option compared to domestic natural gas, there is still demand for LNG. The reason being, the timing and quantum of new supplies are spread out over the next few years which will give the domestic demand scope to catch up. Furthermore, going forward, Petronet only plans to import gas if it has back-to-back sell agreements.