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Barring China, major Asian markets finished their session on a negative note as of the most recent closing prices. Stock markets in Japan and Hong Kong ended the day lower by 1% and 0.6% respectively. At the time of writing, most of the European markets too are trading in the red. Stock markets in the UK and France are trading down by 1.2% and 1.4% respectively.
Back home, Indian equity markets ended the day on a flattish note. Sectoral indices ended the day on a mixed note with stocks from oil & gas and information technology sector witnessing selling pressure. Stocks from the realty sector, however, were witnessing buying interest.
The BSE-Sensex ended the day marginally lower by 1 point, while the NSE-Nifty too ended marginally lower by about 2 points. However, the BSE Mid Cap and BSE Small Cap closed higher by 0.2% and 0.6% respectively. The rupee was trading at 67.15 against the dollar at the time of writing.
As per an article in Livemint, Tata Power Co Ltd's purchase of Welspun Renewables Energy Pvt. Ltd will make the Tata group utility the second largest producer of renewable energy in India.
Reportedly, the company will acquire Welspun Renewables at an enterprise valuation of Rs 92.5 billion, including debt of Rs 55 billion. This will add to the consolidated debt on Tata Power's balance sheet, which stood at Rs 372.5 billion as of 31 March.
Further, the acquisition will give Tata Power a combined renewable energy capacity of 2.3 gigawatts (GW) between solar and wind.
The acquisition will enable Tata Power to 1,140 megawatts (MW) that Welspun Renewables owns. From the above, 1,000 MW is operational, while the rest is likely to be complete within two months.
The acquisition will enable the company deliver significant value for all stakeholders as most of the assets are revenue generating and operating assets.
Talking about renewable energy, we have recently written an article indicating a major flaw in the US$ 100 billion solar sector. Exposure to increased raw material costs and foreign exchange fluctuations can turn out to be a death knell for these solar power projects.
In another news update, state-run power equipment maker Bharat Heavy Electricals Limited (BHEL) has commissioned another 195 MW unit at Muzaffarpur thermal power station in Bihar.This is the second 195 MW unit to be commissioned by BHEL at the 2x195 MW Muzaffarpur Thermal Power Station Stage-II of Kanti Bijlee Utpadan Nigam Limited (KBUNL), a joint venture of National Thermal Power Corporation (NTPC) and BSPGCL.
Reportedly, BHEL's scope of work in the Muzaffarpur project envisages design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators and boilers, along with associated auxiliaries and electrical. The stock ended the day trading higher by 0.9%.
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