Backed by persistent buying in heavyweights, Indian share markets regained lost ground and were trading above the dotted line in the last two trading hours. The sectoral indices are trading mixed with pharma, consumer durables and banking stocks leading the gains and IT, metal and realty stocks being the biggest losers.
Engineering stocks are trading mixed with Shanthi Gears and Praj Industries being the biggest gainers and Opto Circuits and Punj Lloyd being the biggest losers. As per a leading financial daily, capital goods company Larsen & Toubro (L&T) has announced that it has secured orders for 10 MW of solar EPC projects valued at Rs 1.2 bn. The company has an order book position of Rs 3.5 bn. The latest project translates into realisations of Rs 125 m per MW. Reportedly, the benchmark cost of setting up solar projects presently stands at Rs 90 m per MW. As per L&T, the realisation of Rs 125 m per MW includes scope, specifications, terms and conditions. The company has said that the use of trackers with high efficiency modules pulls up the overall cost significantly but at the same time improves generation quality providing monetary benefits to the developers in the long run. The higher realisations per MW in solar projects bagged by L&T shows that the industry is witnessing growth with customers willing to pay a premium for better life-cycle cost advantages. The stock is currently down 0.2%.
Most of the mining stocks are trading in red with Manganse Ore India Limited (MOIL Limited) and Sesa Goa leading the pack of losers. As per a leading business daily, Coal India (CIL) has outlined investments of Rs 75 bn to develop railway tracks and other related infrastructure for the evacuation of coal from the states of Chattisgarh, Jharkhand and Odisha. The investments will be phased over the next 3-4 years. CIL will finance the cost of laying of tracks by the Railways to be owned by the latter. In the absence of rail infrastructure, CIL has not been able to fully extract coal from its mines. Due to problems in coal evacuation, there is a gap of 45 million tonne (mt) between approved production and output. As per CIL, nearly 58 mt is stuck in its mines out of which 12 mt has been liquidated in the last three months. The company has said that if this plan works, then it will be rolled out in the other states as well for extraction and evacuation of coal. CIL stock is up 0.3%.