Indian equity markets continued to trade weak over the last two hours of trade. IT and consumer durables stocks witnessed maximum selling pressure, while capital goods and realty stocks witnessed maximum buying interest.
Steel stocks are trading weak. SAIL and Tata Steel are the biggest gainers while JSW Steel and Jindal Steel are the biggest losers. According to a leading financial daily, SAIL has entered into a 50:50 joint venture (JV) with Japan's Kobe Steel for producing 0.5 million tonne per annum (mtpa) of iron nuggets at Durgapur plant in West Bengal. The joint venture would use Iron Making Technology Mark-3 (ITmk3) for producing iron nuggets from iron ore fines and non-coking coal to use in steel-making electric arc furnaces (EAFS). SAIL and Kobe Steel had also signed a memorandum of understanding (MOU) in November 2010 for setting up a 1.2 mtpa gas-based steel plant to produce steel for the auto sector.
Engineering stocks are trading strong led by Bharat Electric and Jain Irrigation. According to a leading financial daily, Larsen and Toubro (L&T) has submitted a request for qualification (RFQ) and financial bid to the state-run Maharashtra State Road Development Corporation (MSRDC) for the western coast and coast water transport projects. According to the bid, the contractor would construct jetties and related infrastructure for operation of boat services. The project is being implemented on cash on contract basis, wherein the state undertaking would shell out funds and the contractors would complete the construction of jetties. Nagarjuna Construction Company, J Kumar, Simplex, Pratibha Industries, Supreme BBM, JMC and Unity Infrastructure are the other bidders for the project.