After hovering around the dotted line for the full day, the Indian equity markets ended the day on a firm note amidst strong buying activity during the last trading session. The BSE-Sensex closed higher by about 61 points, while the NSE-Nifty closed higher by about 10 points. The BSE Mid Cap and the BSE Small Cap indices ended the day lower by about 0.4% and 0.1% respectively. While gains were largely seen in stocks from the information technology and metals spaces, stocks from realty, banking and power sectors led the losses.
As regards global markets, Asian stock markets closed on a mixed note today while European indices have opened weak. The rupee was trading at Rs 63.03 to the dollar at the time of writing.
Power stocks ended the day on a weak note with NHPC, Torrent Power and NTPC leading the pack of underperformers. As per a leading business daily, National Thermal Power Corporation (NTPC) has envisaged capex of Rs 200 bn during FY14 for expansion. This is slightly higher than the Rs 199.2 bn that the company had spent in FY13. The firm added 4,170 MW of capacity including 1,000 MW through its joint venture projects in the last fiscal. The company's power generation capacity has reached 41,187 MW. In addition to this, the Cabinet Committee on Investment (CCI) has restored coal linkage to the company's proposed 1,980 MW North Karanpura power plant in Jharkhand. Funding may not really be an issue for the company given its relatively strong balance sheet as compared to its peers.
Real estate stocks ended the day on a weak note with Prestige Estates, Sobha Developers and Unitech leading the pack of losers.Stocks from the real estate sector have been under pressure of late over news of rising inventories across the country. As per a leading business daily, builders are sitting on inventories of nearly 48 months in Mumbai, 23 months in Delhi, 25 months in Bangalore. These are believed to be close to 2007 levels, when inventories were at their all time high. While builders may be expecting demand to pick up during and post the upcoming festive season, it is difficult to gauge the same on the back of lower affordability rates, especially for genuine home buyers.