Indian stock market indices have been trading in the red over the past two hours of trade led by persistent selling across index heavyweights. Auto and Oil & Gas stocks are dragging the markets, while IT and Consumer Durables have managed some gains in trade so far.
Power stocks are trading in the red on heavy selling witnessed in Coal India and NTPC. India's largest power generator, NTPC has been facing obstacles in new projects in the form of gas shortage and legal tussles over tenders. The power company is preparing a backup plan to avoid missing on its capacity expansion targets. As per the management, the company intends to achieve its objective of planned capacity expansion as well as the capital expenditure. NTPC is exploring the option of expanding its power plants if the proposed projects fail.
It may be noted here that the capacity addition by NTPC is crucial for the whole country as decided under in the 12th plan. NTPC is expected to add 25,000-30,000 MW of capacity in the next 5 years. The total target under the 12th Plan is 0.1 m MW.
Aluminium stocks are witnessing some selling pressure. Both Hindalco and NALCO are trading in the red. India's state run National Aluminium Company (NALCO) has received approval from the union coal ministry to mine a coal block in Orissa. The allocation was made for NALCO's Utkal coal block at Angul, about 161 km from Bhubaneswar. The block covers an area of around 212 hectares and has an estimated coal reserve of 70 m tons. The coal will be used by the company for its captive power plant which supplies power to its aluminium smelter. The scheduled commencement from Utkal coal block was already delayed due to problems pertaining to environment clearances and land acquisition. The company hopes to quickly sign the mining lease with the state government and start production from the coal block.