Indian share markets recouped losses and traded above the dotted line in the post-noon trading session. Majority of the sectoral indices are trading positive with FMCG, capital goods and pharma stocks leading the pack of gainers. Metal, auto and oil & gas stocks are among the few languishing in red.
Mining stocks are trading mixed with Sesa Goa and Metals and Minerals Trading Corporation of India Ltd. (MMTC) being the biggest losers and National Mineral Development Corporation (NMDC) and MOIL being the biggest gainers. As per a leading financial daily, in a bid to increase coal production Coal India is scaling up mechanization in its existing underground mines. The company has said that for augmentation of underground production, manual mines are being converted to semi-mechanized board and pillar mining with load haul dumper and side discharge loader and fully mechanized mass production technology with continuous miner and power support longwall, in phases. Reportedly, the company could meet only 91% of its production target during April-August 2012 which was also marginally lower than the corresponding output last year. The company is also contemplating at outsourcing its greenfield open-cast mines and washeries to private companies in order to shore up production. Coal India has identified 13 opencast greenfield projects with 65 m tonnes (mt) capacity and four washeries accounting for 22.5 mt to be given to mine development operators. Coal India has set a target to mine 615 mt in the terminal year of 12th Plan (2016-17), up from 436.10 mt in 2012-13. Coal India stock is marginally down.
Engineering stocks are trading strong led by Everest Kanto Cylinder and Crompton Greaves. According to a leading financial daily, Bharat Heavy Electricals Limited (BHEL) may buy a European metro rail technology company for US$ 500 m. For this, BHEL plans to use some of its cash reserves that totally amount to US$ 1.3 bn and also raise debt. We may note here that BHEL is looking at expanding its transportation business and wants to benefit out of the plan to build metro-rail networks in several Indian cities. In the wake of slowing power business, the country's largest power equipment maker is seeking ways to revive its business and profitability.