The indices in the Indian stock market
managed to stay above breakeven during the closing hours and as a consequence, kept their positive ending streak intact. The BSE-Sensex closed higher by around 80 points whereas the NSE-Nifty edged higher with gains of around 20 points (up 0.3%). The BSE Midcap and BSE Small cap indices outperformed their larger counterparts and closed with gains in the region of 0.8% and 0.6% respectively. The advance to decline ratio stood at 2:1 on the Sensex in favour of the former.
Most indices in Asia also closed higher today whereas Europe too is trading in the positive currently. The rupee was trading at Rs 45 to the dollar at the time of writing.
PFC, the state run lender has said that it may raise Rs 50 bn by issuing tax-free bonds in the current financial year in order to finance lending to power projects. Within a day or two, it should get the approval from the Ministry of Finance for the same. It should be noted that the company had recently raised about Rs 30 bn through 3, 5 and 10-year bonds. Of this, a major amount to the tune of Rs 21 bn came from the 10-year segment. The company provides a range of financial products like project term loan, lease financing, direct discounting of bills and consultancy services for various power projects. The stock of the company closed 2% lower today.
Cement stocks closed mostly lower today with the biggest losers being ACC and J K Lakshmi Cement. As per a leading daily, the sector could go through some tough times in the near future. On account of continuous capacity additions, the surplus capacity is likely to stay till 2013. However, the situation is likely to get aggravated should the demand growth slow down to less than 8% as it did in the previous fiscal. Pressures are also likely to be applied on the costs front what with the excise duty being hiked and the increase in coal prices. Thus, it looks like the odds of making good returns on cement stocks in the medium term does look low at the moment.