Backed by persistent buying in index heavyweights, Indian share markets remained strongly upbeat in the post-noon trading session. All the sectoral indices are trading positive with metal, realty and banking stocks leading the pack of gainers.
Majority of the power stocks are trading positive with Jaiprakash Power and JSW Energy being the biggest gainers. Torrent Power and Gujarat Industrial Power are among the few stocks trading in the red. According to Associated Chambers of Commerce & Industry (Assocham), a huge 80% of the coal-based power projects in the private sector are lagging behind their schedule of commissioning due to delays in regulatory clearances. Even the 20% projects, mainly by frontline industrial houses, that are running on schedule are beginning to feel the heat of uncertainty over coal linkages. According to Assocham, at the end of the 11th five-year plan (2007-12), the private sector is likely to add only 7,000 MW of capacity. The bulk 44,000 MW of the remaining capacity addition by private players is likely to face long delays.
All the automobile stocks are trading in the green with Tata Motors and Bajaj Auto leading the pack of gainers. As per reports by the Economic Times, two-wheeler major Hero Motocorp is looking at phasing out three of its relatively newly launched models - Impulse & Ignitor motorcycles and Maestro scooter - as the company had launched these vehicles using the technology assisted by earlier partner Honda Motors. As per the management of Hero Motocorp, the company wants an independent robust R&D set-up. Towards the same, it has recently tied up with a European design and technology provider (third tie-up; name is not yet disclosed) and is looking at developing products to replace those developed with the help of Honda. It must be noted that the company is already in the process of setting up an R&D centre at Jaipur for which it is spending Rs 4 bn.
In another development, the company is also believed to be going slow on production to avoid a situation of inventory pile up. It is reported that the overall slow demand has led the company to cut production by about 15 to 18% in the month of September as compared to the financial year till date. Hero Motocorp stock is up 0.5%.