The benchmark indices in Indian stock market continued to trade firm over the last two hours of trade. All sectoral indices are trading firm except for IT. Consumer Durable and Realty stocks witnessed maximum buying interest.
Telecom stocks are trading strong. All stocks in the sectoral index are trading in the green. ITI and Idea are the biggest gainers. The telecom ministry on Monday unveiled the new draft telecom policy. One of the major highlights of the new telecom policy is the abolition of roaming charges. This could be bad news for telecom companies like Bharti Airtel and Idea as their margins could be hit severely. Currently GSM operators like Airtel get around 8% of their revenue from roaming charges. According to Ernst and Young (E&Y) a global consultancy firm, the net revenue loss from scrapping of roaming charges on telecom operators could be around USD $400 m.
Steel stocks are trading strong. All stocks in the sectoral index are trading in the green. Jindal steel and Adhunik Metaliks are the biggest gainers. According to a leading financial daily, Steel Authority of India (SAIL) has sought gas allocation of 5 million standard cubic metres per day (MSCMD) from the central electricity board for its proposed 1,050 mega watt (MW) independent power plant at Jagdishpur, near Amethi in Uttar Pradesh. SAIL is planning to make an investment of Rs 50 bn for the project. In 2009 SAIL had purchased loss making Malvika Steel, at whose site in Jagdishpur the power plant is proposed to be constructed. Attempts are being made to turnaround the loss making company. Earlier SAIL had planned to make an investment of Rs 100 bn to set up a steel plant of 2 million tonnes per annum (MTPA) capacity, along with a 1,050 MW power plant for the revival of Malvika Steel. The steel ministry has written to power ministry to pitch for gas allocation.