Aluminium stocks are trading strong led by Hindalco and Nalco. According to a leading financial daily, Hindalco Industries plans to raise Rs 90 bn for its biggest greenfield project in Odisha. Earlier, Hindalco was planning to build a 0.36 million tonnes per annum (mtpa) aluminium smelter along with a 1 m tonne alumina refinery. The revised plan includes a 0.72 m tonnes smelter to be completed in phases. The company has applied to the state government for approval. However the company has yet not decided on the route for raising funds, whether it will be a bank term borrowing or any other instrument. If completed the this proposed exercise would also make the current fiscal year one of the most hectic fund raising year for Hindalco as the company completed a Rs 15 bn bond issue last week, in addition to raising Rs 30 bn through a similar instrument in April.
Auto stocks are trading weak. Maruti Suzuki and Tube Investments are the biggest gainers while Bajaj Auto and Hero MotoCorp are the biggest losers. According to a leading financial daily, Maruti Suzuki is developing a small two-cylinder 800cc diesel engine along with its parent Suzuki Motor Corp in Japan which is likely to punch 40 horsepower and may deliver fuel efficiency of 25-30 kilometres to a litre. People close to the development say testing and validation is currently on in Japan and, if all goes well, the project may come down to India for indigenisation in 6-12 months. The company hopes the engine will be ready by 2015. The engine is likely to power the next generation A-Star, or globally Alto, which has not made a major inroad into the country.