Indian indices continue to languish in the red as heavy sell off in heavy weights continued during the last two hours of trade. Stock in metals and realty are the biggest losers in the markets.
The BSE-Sensex is down by 250 points while NSE-Nifty is trading 82 points below the dotted line. BSE-Midcap index is down by 0.6% while BSE-Smallcap index is trading 0.6% below yesterday’s closing. The rupee is trading at 46.54 to the US dollar.
As per reports, Reliance Infrastructure Ltd. (R-Infra) has entered into a pact with the Maharashtra State Road Development Corp Ltd. (MSRDC) to take over the existing Bandra-Worli sea link project and extend it up to Haji Ali. Under this agreement, R-Infra will pay MSRDC Rs 16.3 bn for taking over the Bandra-Worli sea link. The Worli-Haji Ali sea link is expected to cost a further Rs 33.66 bn. As per R-Infra’s spokesperson, the 6 km Worli-Haji Ali sea link will be completed by Jun 2014 as per agreement with MSRDC. R-Infra, for this project, will be raising about Rs 26 bn. Of this, Rs 11 bn will be raised though equity while around Rs 13 bn will be raised through viability gap funding and the remaining would be raised through debt. The traffic on this route is expected to grow by 13-14% every year and R-Infra is expected to benefit from this project as it will have the right to collect toll.
As per a leading financial daily, ITC is setting up a 200,000 tpa paper plant at its Bhadrachalam unit. This new plant is expected to cost Rs 10 bn and will take the current combined capacity of ITC’s paperboards and speciality paper division from 560,000 tpa to 760,000 tpa. The project has already started and is expected to be operational in two years with funding through internal accruals.
Demand for paper is growing at 8-10% per year while demand for writing and copier segment is growing by 15%. With this new capacity, ITC is looking to increase its revenue from this fast growing segment.