Backed by persistent buying activity Indian markets continued to trade in green during the post noon trading session. All the sectoral indices are trading in green with banking and realty stocks being the leading gainers.
Most of the Steel stocks are trading in green with Jindal Saw Ltd and Maharashtra Seamless being among the leading gainers. As per the financial daily, the first phase of Tata steel's greenfield steel plant at Kalinganagar in Odhisha will go on stream stream by 2HFY15. Reportedly, the newly joined Tata steel managing director T V Narendram said the first phase will be of three million and will start somewhere between September 2014 to March 2015. Further, the project was estimated at Rs 154 bn at the time of signing of MoU with the state government in 2004. The cost has now escalated to about Rs 400 bn due to delays. The first phase will cost about Rs 250 bn. The company's proposed 50,000 tonne per annum ferroalloys plant and 0.4 million tonne bar mill at Gopalpur will also be commissioned in FY15. Tata steel is trading up by 0.4%,
Automobile stocks are trading mixed with Ashok Leyland and Force Motors being the biggest gainers and Escorts and Maharashtra Scooters trading in the red. As per a leading financial daily, the Ministry of Heavy Industries has said that it is targeting to introduce subsidies for electric vehicles, under the National Electric Mobility Mission Plan, by April 2014. Under the plan, the government would provide incentives to the tune of Rs 120 bn over the next seven years till 2020 with an average subsidy of Rs 20 bn each year. The subsidies are aimed at building a thriving electric vehicle market in India. As per studies by 2020, the government expects a penetration of 1.5 m four wheelers and 4.5 m two wheelers based on electricity and will have a share of 17% of the total sales. As per the Ministry of Heavy Industries, success of the electric vehicles will result in fuel savings of Rs 400 bn. The government is contemplating to offer incentives to the vehicle owner on the cost differential with respect to the electric vehicle. The prime reason for the delay in the roll-out of incentives is the economic slowdown that has left the government cash strapped.