Indian stock markets managed to bounce back and trade in the positive territory during the last two hours of the trade. Metal stocks and Oil and gas stocks are leading the gains while capital goods and consumer durables are trading weak.
Engineering stocks are mainly trading weak led by KSB Pumps and Finolex Cables. However, Welspun Corporation is on the gaining end. As per a leading financial daily, Larsen and Toubro Ltd. (L&T) has won an order worth Rs 21.6 bn in its infrastructure segment. The order has come from GMR infrastructure for construction of stretches consisting of six laning of Kishangarh Udaipur Ahmedabad Highway. The Highway project is part of Phase V of National Development Programme (NHDP) of the National Highways Authority of India (NHAI). It intends to upgrade the golden quadrilateral section from existing four lane to six lane. As per the management, the orders would be executed on engineering, procurement and construction (EPC) basis. The company's construction division has recently won new orders worth Rs 27 bn in the months of October and November itself. The stock has been trading in the red.
Banking stocks have been trading in the red today with Bankex down 0.52%. The negative sentiment arose after the finance ministry raised concerns on the delay in state government approvals to infrastructure projects in the eastern region. The public sector banks have sanctioned significant amount of loans for large projects and delay in approvals has increased cost overruns endangering project viability thus raising default risks. Lending by banks to infrastructure projects, including telecom, power and roads, increased 21.7 per cent to Rs 5,745 bn in October according to Reserve Bank Of India (RBI) data.