As regards global markets, Asian indices are trading firm led by China, Hong Kong and Japan with gains of about 1.2% each. The rupee was trading at Rs 61.14 to the dollar at the time of writing.
Power stocks are trading mixed today. GVK Power and KSK Energy are leading the gainers; while Tata Power and Torrent Power are among the top losers. India's largest integrated power company Tata Power has faced opposition from the Punjab and Haryana state governments to any hike in power tariffs from the company's 4,000 MW imported coal-fired Mundra ultra mega power project (UMPP) in Gujarat. The states do not want any change in the power purchase agreement that has been signed by the company. The hike in tariffs was recommended by a panel headed by HDFC chairman Deepak Parekh; which suggested a hike in levellised tariff for the power supplied by the Coastal Gujarat Power Ltd, an arm of Tata Power. The Central Electricity Regulatory Commission (CERC) had, in April, allowed the Tata Power to pass on high costs of imported coal to end consumers. This decision by the CERC has been opposed by the state governments on the ground that it would be a burden on its state utilities. Tata Power is trading down by about 0.8% at the moment.
Auto stocks are currently trading firm with Ashok Leyland and Maruti Suzuki leading the pack of gainers. As per reports, Mahindra & Mahindra is looking to realign its two-wheeler business. The company is planning to make it a part of its automotive and farm equipment segment (AFS) by early next fiscal. As per the company, the two wheeler business would be able to take advantage of the AFS segment's existing infrastructure including R&D, manufacturing, distribution, marketing and human capital. M&M's management had earlier indicated its intention of being present across all segments of the auto space. Hence, this move appears to be part of its overall strategy of strengthening its presence in the two wheeler space.