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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian markets lose further ground 
(Thu, 18 Aug 11:30 am) 
 
Indian stock market indices continued to extend losses led by persistent selling across index heavyweights during the previous two hours of trade. IT and banking stocks are leading the downfall, while realty and FMCG stocks are the biggest gainers.

The BSE-Sensex is down by 187 points and NSE-Nifty is down by 58 points. BSE-Midcap and BSE-Small cap indices are down by 0.86% and 0.94% respectively. The rupee is trading at 45.62 to the US dollar.

Aluminium stocks are trading in the red with the key losers being Hindalco and Nalco. Hindalco Industries may see a rise in production costs in its upcoming aluminium project in Mahan in Madhya Pradesh. This is because the Mahan coal block from where the company is supposed to draw coal for its captive power plant has run into environment problems. The Mahan coal block is under no go area and the matter has been referred to the group of ministers by the ministry of environment and forest. The company is building a 359 kilo ton per annum (ktpa) aluminium smelter and 750 MW power plant for captive purposes. It is essential for the company to receive green clearance otherwise the cost of the project will increase substantially. This is because alumina and power comprise close to 70% of production cost of aluminium. Without captive source there is no way that Hindalco could produce low cost aluminium.

Power stocks are trading in the green. Suzlon Energy and GMR Infrastructure Ltd are the biggest gainers while Adani Power and Lanco Infratech are the biggest losers. According to a leading financial daily, Power Grid Corporation, India's largest state run power transmission utility company is planning to raise around Rs 10 bn via bonds. The company will issue bonds with maturity in 2030 with staggered redemptions from 2016. The bonds are rated 'AAA/Stable' by CRISIL and 'LAAA' by ICRA. The coupon rate will be finalized once the company meets with various bankers. The issue is likely to open on August 23 and close on August 25. It must be noted that the company has planned capex of Rs 185 bn for FY12 (55% above FY11 capex) and this bond issue could partly help it funds the same.

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