The BSE-Sensex is trading lower by 27 points and NSE-Nifty is trading down by 12 points. However, BSE Mid Cap and BSE Small Cap indices are trading up by 0.1% and 0.3% respectively. The rupee is trading at 56.15 to the US dollar.
Power stocks are trading weak led by Adani Power and Reliance Power. As per a leading daily, power tariffs are set to rise soon. This follows Coal India's decision to raise prices by almost 5%. On Tuesday, Coal India reduced prices of premium varieties of coal but increased the prices of the rest by 10%. Resultantly, power tariffs will rise by 7 paise per unit to 45 paise. As per National Thermal Power Corporation (NTPC), the cost of generation at its Farakka and Kahalgaon units would rise by 36 paise to 42 paise per unit. The cost of power would on an average go up by 3.5%. We may note here that Coal India had last increased prices in January 2011.
Energy stocks are trading mixed with Jindal Drill and Oil India Limited leading the gains while Chennai Petroleum and Gujarat State Petronet witnessed selling pressure. As per a leading daily, Oil and Natural Gas Corporation (ONGC) is looking at setting up a gas processing plant in Maharashtra. This integrated unit would require investment of Rs 100 bn. The new plant will have a processing capacity of 10 mmscmd and a 30 megawatt captive power plant as part of the project. According to a company official, the Ministry of Environment and Forest (MoEF) has prescribed Terms of Reference for preparation of the environmental impact assessment report and environment management plan for the gas processing plant. This report would be submitted to the Maharashtra Pollution Control Board for public hearing.