Indices in the Indian stock market came off the day's highs during the closing hours. However, the selling was not particularly intense and as a consequence, they managed to close the day strongly in the positive. Thus, BSE-Sensex edged higher by around 170 points whereas gains on the NSE-Nifty came in at around 55 points. Gains were also seen in the BSE Midcap and BSE Small cap space as both the indices closed higher by around 0.8% each. On the advance to decline ratio, only one stock closed the day in the red as opposed to four that edged higher.
While most Asian indices closed the day in the red, European indices are trading mostly in the positive currently. The rupee was trading at Rs 45 to the dollar at the time of writing.
State-run Rural Electrification Corporation (REC) witnessed a positive sentiment on the bourses today and closed higher by around 3%. Investor interest was perhaps triggered by news doing the rounds that the company is planning to diversify into power generation by setting up renewable energy projects with an investment of about Rs 28 bn. This would be done over the next five years and would be undertaken by its subsidiary REC power distribution company. REC is targeting a capacity of 300 to 400 MW in renewable energy and is in discussion with a number of players for the same. The company will like to have projects that have PLF of 50% or more. PLF is an indicator of the average capacity utilisation of a plant.
Tata Steel, world's sixth largest steel producer, has said that it may increase production of auto-grade steel by 20% to 1.2 m tonnes in the current financial year. This step will be taken on account of increased demand of steel from the auto sector. It should be noted that the company supplied one million tonnes of auto grade steel in FY11 and this year it is aiming to touch 1.2 m tonnes. However, it has no plans of stopping here. It aims to increase its capacity in auto steel at a similar rate over the next few years as well. Currently, almost 40% of the country's auto steel comes from the company and it is taking adequate steps to ensure that the market share remains the same in the forthcoming period. The stock closed 2% higher on the bourses today.