Indian stock market indices are trading strong over the last two hours of trade on the back of sustained buying activity across index heavyweights. Auto and Realty stocks witnessed maximum buying interest.
Aluminium stocks are trading strong led by Hindalco and Nalco. According to a leading financial daily, National Aluminium Company Limited (NALCO) has cut its daily aluminium production by 10% because of prevailing coal crisis. The production cut at its smelter in Orissa's Angul town is likely to continue for some more time as coal supply still remained thin. Although the company has other options such as use of imported coal and purchase of power from the state grid, they are not viable because this would raise cost of production. The Angul smelter was operating for the last three months on three to four days coal stock. The crisis worsened early September when the aluminium smelter had to shut down 60 of its 931 operational pots. Another 60 pots were closed down later. A total 120 pots continue to remain shut. The pots are likely to be re-started only after the company is able to build adequate coal stocks.
Banking stocks are trading in the green. All the stocks in the sectoral index are trading in the green led by Unit Trust of India (UCO Bank) and Canara Bank. According to a leading financial daily, Industrial Development Bank of India (IDBI Bank) is planning to raise USD $200 m from the Switzerland market under its medium term not (MTN) foreign debt raising program. Earlier, IDBI Bank had hired investment managers like BNP Paribas, Credit Suisse Group and UBS for raising capital through Swiss franc denominated bond sale. IDBI Bank, which has a USD $1.5 bn MTN program, has already raised around USD $400 m in the first part of this calendar year. Domestic banks are increasingly looking at Switzerland to raise capital as part of their market diversification drive. So far Union Bank of India and Exim Bank have raised money from Swiss market in recent past.