After opening firm, the Indian share market indices continued to trade firmly above the dotted line during the morning trading session. All sectoral indices are trading firm with stocks from capital goods and realty sectors witnessing maximum buying interest.
The BSE-Sensex is trading up by about 195 points. The NSE-Nifty is trading up by about 61 points. The BSE Mid Cap index is trading higher by 1.24% while the BSE Small Cap index is trading up by 1.18%. The rupee is trading at 60.52 to the US dollar.
Power sector stocks are trading in the green with Adani Power and CESC Ltd leading the gains. As per its order last week, the Supreme Court had termed ad hoc allocation of coal mines as illegal. As per a leading financial daily, this may adversely impact leading state-run power generation firm NTPC's plan to acquire some of the troubled private sector power projects. The company had shortlisted about 8,000-9,000 megawatt (mw) of power capacity out of about 55,000 mw of capacities being developed by private players who had responded to the NTPC's call to salvage distressed projects. It had considered only those power units where generation costs were viable as per its standards. Hence, in case the Supreme Court ruling affects the mines allotted to the shortlisted private power projects, NTPC would have to settle for a lower target.
Oil and gas stocks are trading on a firm note with Indraprastha Gas Ltd (IGL) and Indian Oil Corporation (IOC) leading the gains. As per a press release filed with the BSE, the board of state-run Oil and Natural Gas Corporation (ONGC) has approved an investment of Rs 52.19 bn towards Daman Development project to enhance production of natural gas and condensate in its Tapti Daman block in the Arabian sea. The production is expected by July 2016 with peak production rate of 8.35 mmscmd of gas and 9,286 barrels of condensate per day. The cumulative production till 2034-35 is pegged at 27.67 bn cubic meters of gas and 5.01 million cubic meters of condensate. The project will include installation of seven well head platforms, one riser platform with associated pipelines and drilling of 28 wells. The project is expected to be completed by pre-monsoon 2019.