Indian stock markets indices traded strong over the last two hours of trade on the back of sustained buying activity witnessed across index heavyweights. Metal and Banking stocks witnessed maximum buying interest.
Steel stocks are trading in the green led by Steel Authority of India Steel Authority of India (SAIL) and Tata Steel. According to a leading financial daily, SAIL led consortium which has won the bid for Hajigak iron ore mines in Afghanistan, may have to invest a total of about US$ 11 bn in developing the project over the next 8 to 10 years. The consortium proposes to set up a 6 million tonne per annum (mtpa) steel plant in two phases of 3 mpta each with an investment of US$ 7 to 7.5 bn. It will also set up a 1,000 Mega Watt (MW) power plant and a road-rail link of about 200 km for transporting the mineral from the mines to the plant site. The company is planning to invest US$ 75 m in conducting geological studies of the deposit over a 3 year period by a team of experts. SAIL is planning to employ a 48,000 strong workforce and establish a corporate office near Bamiyan to oversee the project work.
Mining stocks are trading strong led by National Mineral Development Corporation (NMDC) and Manganese Ore India Limited (MOIL Limited). According to a leading financial daily, Coal India, which has won a five year licence for exploration and development of two coal blocks in Mozambique, has shortlisted 3 companies for exploration of the block. The 3 companies are Mining Associates, Indu-CBS Joint Venture and Kartikeyan Private Limited. Coal India has asked these 3 companies to justify the price bids following which they will finalise the lowest bidder. Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 bn tonnes, the coal will be imported to cater to domestic demand from customers in Western India.