Backed by persistent selling activity across index heavyweights, Indian markets continued to trade weak during the post noon trading session. All the sectoral indices are trading in the red with banking and capital goods witnessing maximum selling pressure.
Majority of the power stocks are trading in the red with Indiabulls Power and GVK Power being the biggest losers. As per a leading financial daily, the Maharashtra government has approved the tariff revision recommended by the Deepak Parekh panel for power supplied from Tata Power's 4,000 MW ultra mega power project (UMPP) in Mundra but with a few conditions. MahaVitaran, the power distribution arm of Maharashtra, has tied up for 800 MW from Mundra UMPP but is currently getting only 80% of it. Among the conditions laid down is that the tariff should be reduced in line with fall in price of imported coal as also an undertaking by the firm to reduce its return on equity (ROE) as far as possible. The tariff after revision will increase by 59 paise per unit for MahaVitaran. The Central Electricity Regulatory Commission (CERC) had earlier allowed Tata Power's Mundra project ,that supplies power to five states, to pass on high cost of imported coal to consumers through tariff-hikes. The regulator had also asked states that receive power from the project to file affidavit in this regard. Reportedly, Punjab and Haryana states have opposed CERC's approval and moved the court against the decision. Tata Power stock is currently trading down by 0.5%.
Most of the MNC pharma stocks are trading in the red with Pfizer India and GSK Pharma being the major losers. Pfizer India recently declared that it will holding a board meeting where it will be considering an amalgamation with Wyeth India. It must be noted that in 2009, the parent company Pfizer Inc. had acquired Wyeth Ltd. Since some time, Pfizer India had been providing various services to Wyeth Ltd's Indian arm, however both the companies continued to function as two separate entities in India. The board meeting is scheduled for 23rd Nov 2013, when both the managements will meet and various merger related issues will be decided upon.