The BSE-Sensex is trading higher by 94 points and NSE-Nifty is trading up by 26 points. BSE Mid Cap and BSE Small Cap indices are trading firm by 0.5% and 0.4% respectively. The rupee is trading at 55.66 to the US dollar.
Mining stocks are trading in the green led by MMTC Limited and Coal India. According to a leading financial daily, Coal India is expected to incur a loss of Rs 60 bn in its revenues. This is on account of the mining company lowering spot sales to fulfill supply commitments to power sector. We may recollect here that Coal India has been asked to sign fuel supply agreements (FSA) with power companies. The company may have to cut its e-auction sales of coal to meet the requirements of the power sector. However, if the company increases production and decides to hike prices, the loss could be curtailed to that extent.
Hotel stocks are trading in the green led by Country Club and Oriental Hotels. According to a leading financial daily, the Indian hotel industry is suffering from slowdown in the economy. However, this time around, the hoteliers do not want to repeat the mistakes they made in 2008. Instead, they have decided to cut their sales and marketing costs. Hotels are trying to reinvent processes and rationalize costs to tide over the current problems. As per the management of Hotel Leelaventure, it is reducing its marketing expenditure by 10-15%. Companies are also lowering their staff-to-room ratios. Energy consumption will also be kept in check by the hotel companies.