Although trading in the positive, the Indian equity markets shed a large part of their morning gains during the post noon trading session. Stocks from the FMCG, IT and auto spaces are trading firm, while those from the realty, power and capital goods spaces are leading the pack of losers.
The Sensex today is trading higher by about 60 points (up 0.4%) while the NSE-Nifty is trading flat. Midcap and smallcap stocks are also trading higher with the BSE Mid Cap and BSE Small Cap indices by about 0.2% and 0.4% respectively. The rupee is trading at 55.65 to the US dollar.
Power stocks are currently trading weak led by Reliance Power, Adani Power and Tata Power. As per a leading financial daily, Tata Power plans to raise funds to the tune of Rs 15 bn through the issue of non-convertible debentures (NCDs) with a maturity period of 60 years. The company would have a call option on the NCDs that can be exercised at the end of 10 years from the deemed date of allotment and at the end of every year thereafter. The NCDs will have a coupon rate of 10.8% per annum payable semi-annually and a provision to hike coupon rates if the debentures are not called after 10 years.
Stocks of capital goods companies are trading weak led by Larsen & Toubro (L&T), Punj Lloyd and Suzlon Energy. Power equipment manufacturer Bharat Heavy Engineering Ltd (BHEL) is planning to set up a new manufacturing facility in Maharashtra for which it plans to invest a sum of about Rs 1.6 bn. This facility would have a capacity of manufacturing 90,000 tonnes worth of seamless tubes products and will be located at Bhandara in Maharashtra. It must however be noted that this plans is still in its initial stage with land acquisition still pending. As per the company's management, the location of the new plant has been chosen near Nagpur due to its easy access to major steel plants like Bhilai and Rourkela.