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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian share markets open weak
Mon, 8 Oct 09:30 am

Barring Japan (up 0.4%) and Indonesia (up 0.1%), major Asian stock markets have opened the day on a weak note with stock markets in China (down 0.8%) and Singapore (up 0.7%) leading the pack of losers in the region. The Indian share market indices have opened the day in the red as well. Stocks in the capital goods, banking and realty space are leading the losses. However, healthcare and consumer durable stocks are trading firm.

The Sensex today is down by around 64 points (0.3%), while the NSE-Nifty is down by around 16 points (0.3%). Mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% and 0.2% respectively. The rupee is trading at Rs 51.62 to the US dollar.

Power stocks have opened the day on a weak note with GVK Power and Infrastructure, Tata Power, Adani Power and JSW Energy trading the red. India has been suffering from a power deficit as capacity additions have not matched the rate of demand growth. In another setback, plans to build mega power plants in the country have hit a roadblock as financial institutions have refused to fund future projects. As per them, the new norms make the funding unviable. According to the proposed new norms, the ultra mega power projects (UMPP) will be owned by power distribution utilities. The qualified bidders will function as contractors to build the project. They will receive fee through tariffs for a period of 30 years. Given that power distribution utilities would own the land, the project contractors would not be able to mortgage land to raise funds.

As per a leading financial daily, Bajaj Electricals is lowering its exposure in the low-margin engineering and projects business. The segment has been exerting pressure on the company's financial health due to significant cost escalations in older projects. As per its Chairman and Managing Director, the company has decided to bid only for high-margin projects. It has reduced its portfolio to just six projects from the twelve that it had been executing over the last couple of years. It must be noted that as of June 2012, the company's engineering and projects division had orders to the tune of Rs 4.5 bn. During the financial year 2011-12 (FY12), Bajaj Electricals earned about Rs 9 bn from this division. The company expects sales to grow by over 20% during the current financial year (FY13). The stock of Bajaj Electricals is trading in the green.

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Feb 21, 2018 09:51 AM

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