Metal stocks are trading in the red. All the sectoral stocks are trading in the red except for Jindal Steel and Coal India. According to a leading financial daily, India's second largest steel maker Steel Authority of India (SAIL) is planning to raise US$ 1.5 bn in overseas loans to meet its plant expenses. The company will borrow US$ 500 m this month in two stages from Bank of Tokyo- Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation. The interest rate is not specified but the average repayment period for the loans will be 5 years. SAIL is also awaiting central banks approval to raise another US$ 1 bn via the external commercial borrowings (ECB) route. The company is also planning to appoint more than 1,000 dealers in rural India by March 2011 in a bid to increase sales of its branded products.
Power stocks are trading in the red. Adani Power and Tata Power are the biggest losers, while Crompton Greaves and Torrent Power are the biggest gainers. State run Power Grid Corporation is planning to launch India's first 1,200 kilovolt (kv) ultra high voltage (UHV) test station along with experimental lines in Bina, Madya Pradesh. The company will invest around Rs 8 bn for this project. Currently the power is transmitted on 765kv/800kv lines which can transfer power upto 2,400 mega watt (MW). The 1,200 kv can transfer power upto 8,000 MW which is a huge increase. Around 35 manufacturers have joined hands with the company to set up the test station. The company is also setting up a 1,200 kv transmission line for commercial purpose between Wardha and Aurangabad in Maharashtra.