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Realty, banking stocks sink indices
Wed, 15 Jun 01:30 pm

The Indian stock market moved deeper into the red during the previous two hours of trade. Stocks from the realty, banking and software space are leading the pack of losers, while those from the healthcare and FMCG are trading firm.

The BSE-Sensex is trading down by 133 points, while NSE-Nifty is trading 39 points below the dotted line. The BSE Midcap and BSE Small cap indices are down by 0.3% and 0.2% respectively. The rupee is trading at 44.71 to the US dollar.

Engineering stocks are trading mixed with Emco Ltd, Sanghvi Movers, KSB Pumps and Opto Circuit leading the pack of gainers. However, Voltas, Jyoti Structures, Elgi Equipments and Punj Lloyd are trading weak. As per a leading financial daily, BHEL, with cash reserves of over Rs 90 bn, is keen to invest in a joint venture (JV) by picking up equity in state power projects. The move will allow the company to pick upto 25% equity while the remaining 75% equity will be contributed by state firms. It will help the company to generate revenues and additional business for the company. The company has already entered into four such joint ventures with states of Maharashtra, Madhya Pradesh, Karnataka and Tamil Nadu.

As per the management, the company will be investing about Rs 30 bn in such JVs over a period of four years depending upon the schedule of projects and will keep the exit option open after 5-6 years of commissioning of the projects by roping in a third partner. These power plants would be either coal-based or gas-based. The project is expected to take off as soon as they get the linkage to the raw material. Besides, the company is also keen on overseas acquisitions for getting access to new opportunities, technologies and strategic raw materials. The stock is currently trading in the red.

Power stocks are trading mixed as well with CESC Ltd, Reliance Infrastructure and PTC India Ltd leading the pack of gainers. However, Reliance power and Torrent Power are trading weak. As per a leading financial daily, Power Grid Corporation of India will along with Indian and foreign rivals bid for a domestic contract to lay two high-capacity transmission lines of 250 km each to connect independent power stations in Vemagiri to Hyderabad . The contract is worth Rs 13 bn. The Government this January had made it compulsory for state-run companies to compete with private firms for securing power projects. Power Grid has the monopoly over electricity transmission in the country. The company owns and operates about 45% of interstate transmission systems. There are twenty eight other bidders for the project, including Reliance Power, Sterlite Energy, L&T, GMR Energy, Lanco Infratech and JSW Energy. The stock of the company is trading weak.

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Mar 16, 2018 (Close)