Indian share markets slipped deeper in the red in the post-noon trading session. Sectoral indices are trading mixed with realty and Energy stocks being the biggest losers. IT and FMCG are among the major gainers on the bourses today.
Most of the engineering stocks are trading in the red with Suzlon Energy and Jyoty Structure being the biggest losers whereas Lakshmi Machine and Punj Lloyd are trading in the green. As per a leading financial daily Larsen & Toubro (L&T) has launched foreign currency convertible bonds (FCCBs) worth $200 m. The FCCBs have a face value of $2 lakh per bond and carry a coupon rate of 0.675% (payable semi-annually). The bonds will have a tenure of five years and one day and the initial conversion price has been fixed at Rs 1,916.5 per share. The company has applied for the FCCBs to be listed on the Singapore Exchange Securities Trading Ltd and also in-principal approval for the shares to be issued on conversion of FCCBs to be listed on the National Stock Exchange and BSE. L&T stock is currently trading down by 1.2%.
Almost all mining stocks are trading on a weak note. Losers are being led by Hindustan Zinc and Ashapura Minechem. As per a leading business daily, state-owned coal mining major Coal India (CIL) is looking out for location for its Rs 70 bn solar power project. It may be noted that solar power in general requires higher space per MW power generation as compared to other power projects like thermal power. In terms of money, on average it costs Rs 70 m per megawatt for setting up a solar power plant. The company has been off late scouting out for space for the same. As such, CIL has been in talks with the New and Renewable Energy Ministry for setting up a combined capacity of 1,000 MW. The solar project is part of new government's initiative to push economic growth. The government is expected to invest US$ 100 bn in the renewable energy sector over the next four years under a new policy framework. Coal India is trading lower by 1.1% today.