The Indian stock marke lost the gains of morning session during the previous two hours of trade and is now trading flat. Stocks from the healthcare, capital goods and power space are leading the pack of gainers, while those from the oil & Gas and auto are trading weak.
The BSE-Sensex is trading up by 16 points, while NSE-Nifty is trading 9 points above the dotted line. The BSE Midcap and BSE Small cap indices are up by 0.4% and 0.3% respectively. The rupee is trading at 44.75 to the US dollar.
Engineering stocks are trading mixed with Sanghvi Movers, AIA Engineering and Everest Kanto Cylinder leading the pack of gainers. However, Elgi Equipments, Shanthi Gears and Jain Irrigation are trading weak. As per a leading financial daily, Bharat Heavy Electricals Ltd (BHEL) is in talks with Areva, Alstom, Toshiba, General Electric and Siemens to source technology for manufacturing higher rating nuclear sets of 1,000 MW and above. As per the company management, the move is strategic as the country is heading towards high-capacity nuclear power projects providing a good scope for manufacturing high - rating sets of above 1000 MW. The company has a tripartite joint venture with Nuclear Power Corporation of India (NPCIL) and Alstom to manufacture 700-mw nuclear turbines. NPCIL plans to set up high-capacity units in Gujarat, Maharashtra and Tamil Nadu. A lot of projects including Jaitapur in Maharashtra are proposed to have 1,650-MW units. The company wants to make the most of this opportunity and expand to higher sized units. The stock of the company is trading firm.
Banking stocks are trading mixed as well with Punjab & Sind Bank, Indian Bank and Central Bank leading the pack of gainers. However, Central Bank and Bank of India are trading weak. As per a leading financial daily, discontinuation of teaser loans by state bank of India (SBI) has impacted the growth in the bank's home loans. Under the teaser scheme, the bank used to charge slightly lower interest rate for the first few years of the loan. In the month of April, the growth in the bank's loan book was around Rs 10 bn, down 28% from Rs 14 bn average growth per month in the previous fiscal year. As per some sources, the growth has slowed down further in the month of May and the home loan portfolio of the bank stood at around Rs 880 bn at the end of the month as compared to a balance of Rs 868 bn (up 22% YoY) at the end of FY11. SBI officials in charge of home loans refused to comment on this issue. The stock of the company is trading in the green.