After opening on a strong note, the Indian markets have surged upwards. Sectoral indices are trading positive with stocks from the pharmaceutical and capital goods sectors witnessing maximum buying interest.
The BSE-Sensex is trading up 344 points (up 1.3%) and the NSE-Nifty is trading up 110 points (up 1.3%). The BSE Mid Cap index is trading up by 1.67%, while the BSE Small Cap index is up by 1.21%. The rupee is trading at 65.08 to the US dollar.
Stocks in the metal space are trading on a negative note. As per an article in Livemint, Tata Steel has received shareholders' nod to raise upto Rs 100bn through securities to meet the capital requirement. The company stated that the financial markets are very dynamic and it is hard to predict when and which market may provide opportunity to raise cost effective capital. The company continues its strategy of monetizing non-core assets and had raised Rs 10bn during the quarter by selling a part of its equity portfolio. The company reported a consolidated net profit of Rs 7.6 bn in the April-June quarter, up 123.5% YoY. This was mainly led by strong sales from the Indian operations, cost optimization and sale of non-core assets. Stock of Tata Steel is trading down by 0.32%.
Stocks in the power space are trading on a mixed note. As per an article in Economic times, the proposed 'Land Acquisition Bill' by the government will make it difficult to acquire land for the large solar power projects. Sanjiv Goenka, the Chairman of RP-Sanjiv Goenka Group has said that it would be difficult to get land with the new land acquisition bill as proposed. He further stated that unless the government intervened it would not be possible for individuals to acquire large tracts of land which is required for large solar projects. The government has set a target of 100 GW of solar energy by 2022. The government has sought more than US$ 100bn in investment to achieve the solar energy target.