Auto stocks are trading mixed with Maruti Suzuki and Bajaj Holdings and Investments being the top gainers while Tata Motors and Escorts were the top losers. According to a leading financial daily, Maruti Suzuki is going to take a decision regarding re-opening its Manesar plant. However, post re-opening the plant will be under police protection. The Haryana Government is not willing to take any chances and has decided to position a complete battalion at the plant due to security concerns. The battalion will be under the command of Senior Superintendent of Police. Earlier, Maruti on July 21 had announced an indefinite lockout at the unit following violent incidents that occurred. Maruti is also expected to take a call on the employment of workers who have been identified as being involved in the violence and arson.
Engineering stocks are trading strong led by Lakshmi Machine and Suzlon Energy. As per a leading daily, Karnataka Government has asked Bharat Heavy Electricals Limited (BHEL) to pay a penalty of Rs 2.5 bn for supplying faulty power generating equipments at the Raichur Thermal Power Station (RTPS). We may note here that BHEL had been awarded the contract for supply of machinery to the eighth unit of the RTPS. However, since about a year and a half ago, there is a technical snag in the unit and the company has not been able to rectify it. As a result, it has been suffering a loss of 250 megawatt daily over the same period. BHEL has also been asked to bear the maintenance cost of unit 8 and ensure that it starts generating power in two months.