Banking, energy stocks drag Sensex

Wed, 7 Jul 01:30 pm

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After trading in the negative territory during the last two hours of trade Indian indices have plunged deeper into the red. Other key Asian markets are also trading in the negative territory, with Hong Kong leading the pack of losers. Stocks from consumer durables and technology are trading flat while stocks from banking and oil & gas space are marginally in red.

The BSE-Sensex is trading down by around 102 points, while the NSE-Nifty is down by about 30 points. However, buying interest is witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.01% and 0.3% respectively. The rupee is trading at 47.1 to the US dollar

As per a leading business daily, Tata Power led consortium has been awarded three coal bed methane (CBM) blocks for exploration in Satpura, Madhya Pradesh. Australia's Arrow Energy is part of Tata Power's consortium. Initial production is expected to start from 2014. Arrow and Tata Power will jointly explore options for the best use of the CBM gas produced from the block. Arrow Energy with an 80% stake will be the operator of the block. 

The move is considered positive as it is likely to increase gas supply for the Mumbai-based private utility's power generation plans. Here one must note that the company is not dependant only on domestic fuel sources. Most of the coal supplies for Tata Power's upcoming projects will come from its Indonesian coal mines (where it holds a 30% stake).  Considering the company's plans to expand its generation capacity from the current 3,000 MW to 8,200 MW by FY13, these coal assets hold tremendous importance for Tata Power.

Bharti Airtel is scouting for expanding its reach across domestic borders. The recent Zain acquisition deal has marked entry into African markets spanning 15 nations. Now the company has outlined plans to invest US$ 600 m over the next twelve months in Nigeria's mobile market, the biggest in Africa. Initially the company plans to spend US$ 300 m of the total outlined investment expenditure. The company is primarily looking to penetrate more in the rural areas. The move is part of the Bharti's global expansion project.

Zain Nigeria is among the leading telecommunications firms in Nigeria, Africa's most populous country of 150 m people, with a subscriber base of around 20 m.