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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Energy pack shows the way 
(Mon, 28 Jun Closing) 
 
Markets further built on their gains during the closing hours of trade and thus, closed the day significantly in the positive. While the BSE Sensex edged higher by around 200 points (up 1%), the NSE Nifty closed with gains in the region of 65 points (up 1.2%). The BSE Midcap and Small cap indices also came in buoyant, trading higher by around 1% each. Only one stock declined for every four that gained amongst the Sensex stocks today. Among heavyweights, it was clearly the energy pack, led by Reliance and ONGC that dominated the proceedings today.

While Asian indices closed mixed today, Europe is witnessing a broad based buying interest currently. The rupee was seen trading Rs 46.2 to the dollar at the time of writing.

A combination of both domestic as well as international factors played their part in propping up the Indian markets today. On the international front, strength across major European indices and strong oil prices acted as positive cues for the markets. On the domestic front, the issue of oil price deregulation and the Government’s intent of cutting down on wasteful subsidies and paring its deficit acted as significant boosters. The sustainability of the same though remains in question. Majority of the developed economies are still quite fragile and in India too, there are strong chances that the RBI could act as the potential party pooper should inflation start reaching still more uncomfortable levels. The normal progress of monsoon though does act as one of the silver linings in the entire scheme of things.

Tata Power, one of India’s leading private sector power producers closed in the positive today. Interest in the stock seems to have come from news in a leading daily that the company is planning to set up a 150 MW wind power plant in Maharashtra and Tamil Nadu to be commissioned during the current and the next year. Besides, the company is also looking to acquire around 21 MW operating wind assets in Maharashtra from Niskalp Energy. With this, the company goes further down the path of its stated intentions of generating at least 25% of its total power through low carbon or zero emission technologies like hydro, wind power, solar and the like. It should be noted that the company already produces 20% of its total power from clean sources and the goal is to take it to 25% in the years to come. We hope the other companies also take a leaf out of Tata Power’s books and reduce dependence on cheap but ecologically damaging source of fuel such as coal.

M&M, the tractors to realty conglomerate was also amongst the companies that ended the day on a buoyant note. While the company has managed to carve a niche for itself in a lot of sectors, its thirst to diversify seems far from quenched. Latest, it now wants to strengthen its position in the fast growing aerospace space in India. And towards this, it is planning to spend no less than Rs 2.5 bn. While 60% of it would go towards the aerospace components business, the remaining would be accounted for by aircraft manufacturing. Although the company opined that it was concentrating on building the business in the next two to three years, it had said that it was looking at opportunities in both the defense and civil sectors.

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Apr 28, 2017 (Close)

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