Indian share markets continued to remain buoyant in the post-noon trading session. Majority of the sectoral indices are trading in the green led by IT and power stocks. However, banking and oil and gas are among the few stocks trading in the red.
Majority of the power stocks are trading in the green with Tata Power and Nevyeli Lignite being the major gainers whereas Jaiprakash Power and JSW Energy are trading in the red. As per a leading financial daily, Tata Power is considering to export fly-ash from its 4,000 MW ultra mega power project in Mundra to West Asia. Reportedly, the power plant consumes 4,000 tonnes of imported coal a day producing 4% or 1,600 tonnes of fly ash per day out of which 20% is bottom ash in the wet form. While fly ash is used in cement production, bottom ash is used by infrastructure players as landfill material. Presently, two cement players from Gujarat and one from Rajasthan lift 100-200 tonnes of fly ash from the plant, depending on the cement grade. Four companies in Qatar are interested in lifting fly ash from the power project. Export of ash is a three-step process requiring approval, dispatch of trial consignment and then a short consignment to buyers. As per Tata Power, the entire procedure has been fulfilled for one buyer. Tata Power's stock is trading up 2.9%.
Most of the auto stocks are trading in the red with Maharashtra Scooters and Tube Investments being among major losers whereas Ashok Leyland and Tata Motors are among the few stocks trading in the green. As per a leading financial daily, the government is contemplating to provide subsidy of Rs 136 bn for the period until 2020 for the promotion of electric and hybrid vehicles under the National Electric Mobility Mission Plan (NEMMP). The NEMMP was launched in January 2013 but was delayed due to the economic slowdown. A number of automobile companies are already working on electric and hybrid vehicles to generate demand in the alternative market segment. Mahindra Reva has set up a capacity of 40,000 units per annum for electric cars. Even companies like Tata Motors and Maruti Suzuki are working on both hybrid and electric models for India. In two-wheelers, TVS Motors and Bajaj Auto are working on hybrid motorcycles whereas Kinetic Motors is developing a three-wheeler. The funding structure of the electric mobility plan has already been approved by the National Board of Electric Mobility. The Department of Heavy Industries would implement the scheme after taking cabinet approval. Reportedly the scheme is likely to kick-start from August 2014.