The BSE-Sensex is trading higher by 60 points and NSE-Nifty is trading up by 14 points. BSE Mid cap and BSE Small cap indices are trading higher by 0.2% and 0.4% respectively. The rupee is trading at 55.59 to the US dollar.
Mining stocks are trading strong led by Ashapura Minechem and Coal India. As per a leading financial daily, Coal India has stated that it can supply barely 65% of the power sector's coal requirements as per the terms of the Fuel Supply Agreements (FSA) decided some time back. Remaining 15% of the power generating companies' requirements will have to be met with the help of imports. As per the FSA, Coal India is supposed to meet at least 80% of the fuel requirement of power plants. Falling short of this would entail a penalty of 0.01% of the shortfall. For the year, Coal India plans to supply 347 m tonne to the power sector, up from 312 m tonne last year. However, this would not be sufficient to fulfil 80% requirement of the power sector.
Auto ancillaries stocks are trading in the red led by Amara Raja Batteries and Mahindra Forgings. As per a leading daily, Bharat Forge is set to liquidate its plant and machinery in America. This is after the company has been facing continuous losses in the region on the assets that it had acquired 7 years ago. We may recollect here that Bharat Forge had acquired the assets and business of Federal Forge for $9.1 million in mid-2005. The auto component maker had acquired these assets through a wholly owned subsidiary. The US subsidiary formed post the buyout named Bharat Forge America has not been faring well because of recession in the US automobile market.