Indian share markets have remained in green during the previous two hours of trade. The most noticeable upward movements have been witnessed in the realty and healthcare sectors while auto and banks have witnessed some selling pressures.
Automobiles' shares are trading on a mixed note with Mah. Scooters and Eicher Motor leading the gains while M&M and Ashok Leyland are facing the maximum selling pressures. According to a leading financial news medium, Bajaj Auto's Managing Director (MD), Rajiv Bajaj has strongly refused the union's demand for issuing shares. The MD accused the union of misleading the workers at Chakan plant giving them a false hope. The management has disapproved the demand of issuing any shares free of cost to any worker. This is because it stands against the culture of the company. Chakan plant, where the Bajaj products are manufactured, is a laboratory for developing new processes and advancement in terms of technology. Hence, the management is worried about the loss of culture at this plant that was established as per the Kaizen norms. The plant has manufactured over 1600 bikes with the help of 724 workers. The demand for free shares, in the management's view is unwarranted as automobile companies do not issue ESOPs (employee stock ownership plan) to workers. While the management is keen on wage revision issues, restoring production and discipline stands critical for them. The work at Chakan plant has been discontinued from June 26 for demands, such as wage revisions, ESOPs and reinstatement of 22 suspended workers. Bajaj Auto's share is down by 0.1%.
Except few such as Indiabulls Power and CESC Ltd, most of the power sector shares are trading in green with Tata Power and Gujarat Industries Power Company Ltd leading the gains. According to leading financial news daily, NTPC, the country's largest power producer, has stated that it is unable to plan a project without having requisite infrastructure. The Company needs an additional 500 acres for setting up a 1600 MW power plant in West Bengal.
The erstwhile West Bengal Government had acquired 500 acres, but the Company requires an additional 500 acres to progress with the project. The Company also made efforts to acquire land directly with the help of government agencies. But it did not make any headway.
West Bengal government has made it clear that there would be no acquisition of land for any commercial project, be it PSU or private entity. Inadequate infrastructure is restricting the project plans of NTPC. Land acquisition issues have stalled projects for the Company. The Company is already facing issues pertaining to fuel shortages and power pricing. Nonetheless, the sizeable market share and the leadership position will go a long way in maintaining the long-term prospects for NTPC. NTPC's share is down by 0.7%.