Mining stocks are trading in the green led by NMDC Limited and MOIL Limited. According to a leading financial daily, Coal India has cancelled preliminary supply pacts with 60 captive power plants (CPP) and independent producers. Coal India has said that these companies did not comply with the stipulated norms. As per the notice 60 CPPs whose assurances have been withdrawn include units of Bokaro Power Supply, a JV of SAIL and DVC, Bhushan Power and Steel, Essar Power, Grasim Industries, JSW Aluminium, J K Tyre and Industries and Maharashtra Energy Development Agency. An inter-ministerial Committee comprising of representatives from Ministries of Coal, Power, Shipping and Railways among others besides the Planning Commission, had earlier agreed on the withdrawal of the authorisations granted for supply of coal.
Auto stocks are trading in the green led by Tata Motors and Force Motors. According to a leading financial daily, Tata Motors is looking to invest Rs 20 bn in its commercial vehicle business. The auto company will also be launching 50 new products ranging from sub-one tonne trucks to heavy duty Prima trucks. There are plans to introduce Y1 light commercial vehicle range by September. We may note here that the auto company is facing stiff competition from Bharat Benz, VE Commercial, Mahindra Navistar. As per the Tata group company, the market at present for medium and heavy truck space is very unfavourable and the company is operating at 70% capacity.