Indian stock markets pare losses

Mon, 14 Jul 01:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   Closing   

Indian stock markets have pared most of its losses on account of buying from index heavy weights during the previous two hours of trade. Gains are led by the stocks from power and energy sectors, whereas consumer durables and software sectors are leading the pack of losers.

The BSE-Sensex is trading up by 5 points and the NSE-Nifty is trading up 2 points. The BSE Mid Cap index is trading marginally up by 0.1% and the BSE Small Cap index is trading down 0.5% today. The rupee is trading at 60.01 to the US dollar.

Food & tobacco stocks are trading mixed today. While Tata Global Beverages and Godfrey Phillips are trading firm, Wadala Commodities is trading weak. As per a leading business daily, tobacco major ITC's hotel division is planning to acquire its first luxury property in Goa. The company is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels & Resorts for about Rs 7 bn. The property is currently managed by US headquartered Wyndham Worldwide. About 33% of the hotel's rooms have been renovated in last October. The property is closer to the beach and has more than 1 lakh sq ft of additional FSI (floor space index) available as per Advani Hotels FY13 annual report, which will help further expansion or adding of new services to the property. However, ITC has refrained from commenting on the discussion to public as yet. The move will help ITC get its readymade hotel in Goa, which is one of the top tourism destinations as getting land there for new projects is not easy. ITC is trading down 0.7% today.

Majority of the power stocks are trading in the green led by KSK Energy and CESC Ltd. As per a leading financial daily, Tata Power has sought shareholder's approval for increasing its borrowing limit to Rs 270 bn as well as raising Rs 70 bn through issue of non-convertible debentures. The funds will be utilized by the company for its aggressive growth plans in the fields of generation, transmission, distribution and fuel securitization. Tata Power is currently executing various thermal, hydro and renewable energy projects and these entail high capital expenditure that need to be financed by debt and equity. Tata Power is also required to re-finance Foreign Currency Convertible Bonds of Rs 20 bn that are maturing in November 2014. As per the company, non-convertible debentures issued on private placement basis are a major source of borrowings. The borrowings of the company currently aggregate up to Rs 110 bn. Tata Power has an installed electricity generation capacity of more than 8,500 MW. Tata Power stock is currently trading up by 1.5%.