The benchmark indices in the Indian stock market suddenly slid in the last half an hour of trade and are now trading in the red. Stocks from Realty, Power, FMCG and Banking space are trading weak, while those from Consumer Durables and Oil & Gas space are trading firm.
The BSE-Sensex is down by 146 points while NSE-Nifty is trading 53 points below yesterday's closing. BSE Midcap and BSE Small cap indices are also down by 0.4% and 0.3% respectively. The rupee is trading at 44.58 to the US dollar.
Engineering stocks are trading mixed with Siemens and Jyoti Structures leading the pack of losers. However, the stock of Alstom Projects and Bharat Bijlee are trading firm. As per a leading financial daily, Thermax is planning to buy a company in the industrial waste water treatment space. The company is ready to pay up to US$ 100 m for this. As per the company's management, the target market for water treatment in India is worth Rs 40-45 trillion. Within this, potential market for industrial waste water treatment alone would be around Rs 15 trillion.
Apart from water treatment, Thermax also has businesses in industrial heating and cooling, waste heat recovery, captive power units and waste management space. The company has cash reserve of Rs 7.3 bn. So it can go for the planned acquisition without any financing difficulty. Thermax already has technology tie-ups with Wehrle Umwelt GmbH for industrial waste water treatment and GE Water for sewage treatment. The company is also planning capital expenditure of Rs 4 bn. From this, 2 bn will go into the joint venture with Babcock-Wilcox of US towards the development of a plant for manufacturing super critical boilers.
Energy stocks are trading mixed as well with MRPL and GAIL leading the pack of gainers. However, ESAAR Oil and Cairn India are trading in the red. As per a leading financial daily, Reliance Industries is planning to invest up to US$ 12 bn in the chemical business. It is aiming to tap the huge growth potential of hygiene and healthcare products. The company has already got a big refining complex at Jamnagar which can supply the raw materials used in chemical industry. So, the company is planning to have low-cost hygiene products to improve the quality of life for the masses.
It is also aiming to become a leading player in rubber business space. As per the company, it is developing a whole new rubber business.