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Metal stocks lead the gains
Wed, 8 Aug 11:30 am

Indian equity markets have been trading in the positive during the last two hours of trade on back of buying in index heavyweights. Barring capital goods and realty stocks, all sectoral indices were trading firm.

The BSE-Sensex is up by 45 points and NSE-Nifty is up by 13 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.3% each. The rupee is trading at 55.15 to the US dollar.

Power stocks are trading mixed with KSK Energy and National Thermal Power Corporation (NTPC) leading the gains. On the losing side, Indiabulls Power and JSW Energy were the top losers. As per a leading daily, NTPC has stated that the 2 major power blackouts faced last week has resulted in generation loss of 14,000 megawatt for the power producer. The grid failure that affected almost half of the country's total population in over 21 states is being investigated by a committee. The committee comprises heads of major organizations like Power Grid Corporation, POSCO and Maharashtra Electricity Regulatory Commission. We may note here that NTPC generates about 650 m units of electricity daily. Last year was not so good for the company which suffered 13 bn units of power due to scarcity of buyers. NTPC is not expecting the situation to improve in near future as there are no buyers.

Steel stocks are trading in the green led by Jindal Steel and Tata Steel. According to a leading financial daily, Tata Steel has started the feasibility study on two Canadian iron ore mines, with estimated 5.6 bn tonne reserves. The two projects, LabMag and Kemag, are located near the Direct Shipping Ore project in Labrador, Canada. The steel major has joined hands with Canadian firm New Millenium Capital Corp (NML) for conducting the study. Tata Steel is the largest stakeholder in NML with around 27% stake. The two also agreed to enter into a binding joint venture agreement upon the successful completion of the feasibility study, Tata Steel electing to develop one or both of the deposits. As per the agreement, Tata Steel and NML would hold 80% and 20% stake, respectively, in the proposed joint venture. Iron ore from these mines are expected to feed European operation of Tata Steel. The results of the feasibility study are expected by end of this year or early 2013.

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