After starting today's session on a positive note, Indian indices have continued to trade in the positive during the last two hours of trade. Other key Asian markets are trading well in the green. Stocks from IT and metal space are witnessing significant buying interest while stocks in the FMCG and auto space are witnessing lower gains.
The BSE-Sensex is trading up by around 149 points, while the NSE-Nifty is up by about 44 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are both trading higher by 0.7%. The rupee is trading at 46.78 to the US dollar
NTPC has signed production sharing contracts with the government for exploration blocks awarded in the eighth oil and gas blocks auction round held in 2009. State-run NTPC will have a 100 per cent interest and operate an onland block in the Cambay basin in western India, while it will hold a 10 per cent interest in 3 other blocks in other regions. The move is in line with the company's plans to ensure fuel sources (coal and gas), given the constraints it is facing from domestic resources.
NTPC has outlined an aggressive capacity addition plan to add around 22,400 MW of new generation capacity. The pace of execution is poor. Slowdown in capacity addition has been on account of issues in sourcing of adequate fuel among others. Thus, the move is considered positive.
Electrical equipment maker Havells India is planning to relaunch 'Sylvania' brand in India. It plans to invest Rs 1.2 bn in marketing and network expansion this year. Sylvania was earlier present in India through a joint venture Laxman Sylvania. Now, Havells India is planning to form a separate entity called Sylvania India. It foresees this entity to become Rs 5 bn brand in the next five years. The company has planned to launch Sylvania brand in India with the latest technology from Europe in the next two-three months. In 2007, Havells had acquired Frankfurt-headquartered Sylvania for US$ 300 m through its Dutch subsidiary Havell's Netherlands BV.
Sylvania lighting group is a global designer and provider of lighting systems, including both lamps and fixtures. The European subsidiary is still loss making, although the quantum of losses has come down. The subsidiary is expected to break even in the current fiscal. However, it makes sense to have a foothold in the growing Indian economy. This is especially considering the strong growth prospects of the domestic economy and a prolonged slowdown in the developed markets.