Indian equity markets continued to trade strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. Metal and oil and gas stocks witnessed maximum buying interest while auto and FMCG stocks witnessed maximum selling pressure.
Mining stocks are trading strong led by National Mineral Development Corporation (NMDC) and Sesa Goa. According to a leading financial daily, Coal India has lined up Rs 500 bn worth of investment plans for the next 5 years. Currently, the company is sitting on a cash reserve of Rs 610 bn. Battling low production, Coal India has earmarked Rs 245 bn capital expenditure, out of the envisaged investment of Rs 500 bn, over the next five years mainly to boost capacity. The Rs 245 bn would be spent mainly on developing more than 100 underground and opencast mines in seven coal producing subsidiaries in the 12th Five Year Plan (2012-17). The company is also looking at international opportunities to invest.
Engineering stocks are trading in the green led by Elgi Equipments and Jain Irrigation. According to a leading financial daily, Bharat Heavy Electricals (BHEL) is presently executing an order of Uttar Pradesh Rajya Vidyut Utpadan Nigam for two 500 units of Anpara thermal power station located in Sonebhadra district valued at Rs 33.95 bn. The scope of work for BHEL includes design, engineering, manufacture, supply, erection and commissioning of Boiler, Turbine and Generator Package along with associated auxiliaries, some balance of plant and civil works. BHEL has also received the orders for Renovation & Modernisation (R&M) of the Obra thermal power station in the state. However the company is facing some difficulties on account of the delay of new and under construction power projects.