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Oil & Gas Stocks Lead the Losses
Tue, 23 Aug 01:30 pm

After opening the day on a flattish note, the Indian stock markets witnessed choppy trades and continued to trade near the dotted line. Sectoral indices are trading on a mixed note with stocks from the energy and capital goods sectors leading the losses. IT stocks are trading in the green.

The BSE Sensex is trading lower by 40 points and the NSE Nifty is trading lower by 13 points. The BSE Small Cap index is trading down by 0.3% while, the BSE Mid Cap index is trading higher by 0.1%. The rupee is trading at 67.19 to the US$.

Shares of GAIL (India) is trading on an encouraging note (up 1.2%) after it was reported that the company signed a memorandum of understanding (MoU) with California-based Bloom Energy in order to develop natural gas-based fuel cell power generation. This would be a technology which will have less pollution (Subscription Required).

The new technology converts fuel into electricity through an electro-chemical process and the use of water is comparatively less in this mode of power generation. The Bloom Energy Servers could be installed onsite at any operating premises or building and can be plugged into natural gas pipeline to generate uninterrupted, efficient, noise-less base load power round-the-clock.

Whilst GAIL brings a portfolio of natural gas to ensure reliable and competitively available natural gas for Bloom Energy projects along its integrated gas supply networks, Bloom Energy's power systems run on advanced solid oxide fuel cell technology. The company is one of the most efficient producers of electricity based on natural gas but also combines the advantage of requiring a tenth of the space required for generating equivalent power through other modes.

The MoU provides an opportunity for Indian consumers to experience reliable service by two leading companies for expanding the distributed power generation systems in India.

According to a leading financial daily, Power Grid Corporation of India has received its board approval for three investment proposals worth Rs 7.33 billion for power transmission related projects. The board approved provision of STATCOM at Nalagarh and Lucknow in Northern region at an estimated cost of Rs 4.31 billion. The second approval is to provide Series Reactors in the northern region at an estimated cost of Rs 1.77 billion.

Meanwhile, the other approval is for Northern Region System Strengthening Scheme (NRSSS) XXXV at an estimated cost of Rs 1.23 billion with commissioning schedule 24 months from the date of investment approval.

Power Grid's transmission business forms more than 95% of the company's revenues. More than 45% of power generated in India is transmitted through Power Grid. Further, the government has laid a target of installing capacities of 175 Giga Watts (GW) of renewables by 2022. Of this solar alone is expected to contribute 100 GWs. With the increased thrust on renewables, 'Smart Grids' will come into play.

Power Grid is currently trading up by 0.2% on the BSE. The stock price of the company has rallied by 30% (Subscription Required) so far in the calendar year 2016.

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Jan 17, 2018 (Close)