Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.This is an entirely free service. No payments are to be made.
The Indian markets had yet another volatile trading session today as the indices swung between gains and losses. At the closing bell, the BSE Sensex stood higher by 41 points, while the NSE Nifty finished up by 16 points. The S&P BSE Mid Cap finished down by 0.2% while, the S&P BSE Small Cap finished up by 0.3%. Sectoral indices finished mixed with FMCG and pharma stocks leading the gains.
Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.63%, while the Nikkei 225 & the Shanghai Composite fell 1.26% and 0.68% respectively. European markets are also mixed today. The DAX is up 0.29% while the FTSE 100 gains 0.26%. The CAC 40 is off 0.06%.
The rupee was trading weak at 67.02 against the US$ in the afternoon session. Oil prices were trading at US$ 43.91 at the time of writing.
Power stocks languished in red. Reliance Infrastructure and KSK Energy leading the losses. According to a leading financial daily, Tata Power Company's wholly owned subsidiary,Tata Power Renewable Energy (TPREL) has completed the acquisition of 100% shareholding in Welspun Renewables Energy (WREPL) and its subsidiaries. This represents the largest transaction in the renewable space in India (Subscription Required).
Tata Power Company has 9.4 GW of power generation capacity from all sources at present, which it wants to double in six years. It is to be noted that WREPL has one of the largest operating solar portfolios in India spread across ten states. It has about 1,141 MW of renewable projects comprising about 990 MW solar power projects and about 150 MW of wind power. Out of 1,141 MW renewable portfolio, over 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation.
The acquisition is also a significant step towards attaining the company's objective of having non-fossil fuel based capacity up to 30-40% of its total generating capacity.
In another development, NTPC received bids amounting to Rs 14.95 billion for its taxable secured non-convertible debentures issue of Rs 5 billion. To meet its capital expenditure requirements, NTPC Ltd, invited bids for its series 63 of taxable secured non-convertible debentures. NTPC is rated "AAA" by CRISIL and ICRA and the bond issue was also rated "AAA".
Moving on to news from aluminum sector. The National Aluminium Company (NALCO) has been reportedly asked to raise its aluminum smelter capacity to at least 2 million tonne to ensure more of the mineral is utilized within the country instead of being exported. While NALCO's aluminium smelter capacity is only 460,000 tonne, it makes around 2 million tonne of alumina per year.
Piyush Goyal reportedly stated that NALCO had a full-fledged expansion plan which was formed some years ago but it never took off due to the high cost of electricity in the country. Instead, the company went for a tie-up with Iran to export alumina there and produce aluminum in Iran as power is cheaper there.
The Minister also said that the he will soon start a public discourse to put an end to alumina exports.
Meanwhile, NALCO posted a 22.5% decline in net profit in the first quarter of FY17. Company's net profit in the April to June period declined to Rs 1.35 billion against Rs 1.74 billion in the corresponding period of the previous year.
Revenue for the June-ended quarter grew 4% to Rs 15.28 billion from Rs 14.7 billion in the same quarter last year.
Nalco has added US$11.9 billion of captive resources, including over 75 million metric tons of bauxite ore. A new business model has been introduced by the company to strengthen the company's business by leveraging its core competency in mining, metals and energy sectors, through modernization, Greenfield and Brownfield expansions, upstream and downstream integration. NALCO finished the day up by 0.1% on the BSE.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!