Most major Asian stock markets have opened the day on a firm note with Japan (up 2.5%), Hong Kong (up 1.1%) and Indonesia (up 1.1%) leading the gains. However, the Indian share market indices have opened the day on a negative note. Stocks in the oil and gas space are leading the losses. However, metal stocks are trading firm.
The Sensex today is down by around 11 points (0.1%), while the NSE-Nifty is down by around 4 points (0.1%). However, mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% each. The rupee is currently trading at Rs 66.00 to the US dollar.
Engineering stocks have opened the day on a firm note with Elecon Engineering, Praj Industries and Jain Irrigation leading the gains. As per a financial leading daily, leading engineering and construction firm Larsen & Toubro (L&T) has bagged water project orders worth Rs 11.41 bn in the month of August, 2013. The orders have been won by the water and renewable energy business of L&T Construction. Of the orders, one includes an integrated drinking water supply project linking towns and villages in Rajasthan by the Public Health Engineering Department of the state. The scope of the project includes supplying and laying of transmission pipelines, construction of clear water reservoirs and pumping stations. L&T has bagged another turnkey order for the design, construction and commissioning of a water treatment plant from the Public Health Engineering Department of West Bengal. It has also won an order from the Tamil Nadu Water Supply & Drainage Board for a water supply project for Cuddalore Municipality. Apart from these projects, the company has also won an order for waste water business from Delhi Jal Board and another industrial water systems project from an infrastructure developer in Karnataka.
The state-owned firm is also conducting due diligence to acquire a few stranded power plants. Industry estimates suggest that over 10,000MW of distressed power units valued at about Rs 600 bn are available for acquisition in the secondary market as developers are unable to attain financial closure due to various issues, including land acquisition, environmental clearances, fuel supply agreements and power purchase agreements. NTPC currently generates 41,184 MW through 32 operational power plants across India, accounting for about 20% of India's total installed power generation capacity.