Indian indices managed to remain above the dotted line during the previous two hours of trade. Stocks from the consumer durables and metal space are trading firm while stocks from the auto and banking space are trading marginally weak.
The BSE-Sensex is up 53 points while NSE-Nifty is trading 17 points above the dotted line. BSE-Midcap is trading up by 1.1% while BSE-Smallcap index trading 1.2% above yesterday's closing. The rupee is trading at 45.05 to the US dollar.
Auto stocks are trading mixed with Escorts, Tata Motors and Tube Investments leading the gains while Hero Honda and M&M are trading in the red. A leading business daily has reported that two-wheeler major, TVS Motor is looking at increasing capacity at its manufacturing facility in Hosur, Tamil Nadu. As per the management, the company would increase the capacity from 12,000 units to 20,000 units at the facility. This expansion will be mainly be ramped up to produce scooterettes. As per the company, it is seeing a strong demand for its scooterette model, Wego. Currently this model is not available in certain markets such as the eastern part of the country as well as in Tamil Nadu, TVS' largest market. The company plans to launch this model in Tamil Nadu sometime in early 2011. Scooter sales have remained strong in recent times. During the month of November 2010, TVS sold about 36,200 units as against 25,100 units in November 2009. This is an increase of about 44% YoY. Overall two-wheeler sales grew at a pace of 27% YoY during the month, indicating that the scooter sales have grown much faster.
Power stocks are mainly trading firm with CESC Ltd, Coal India and Rel Infra leading the gains. However, Power Grid Corp and Tata Power are trading weak. The country's largest power producer, NTPC, has said it would pick up 76% equity each in two thermal power projects in Jharkhand. The company has been in talks with the Jharkhand government to pick up stakes in Patratu and Tenughat. These two projects, which have a combined capacity of 2,640 MW have coal linkages and are running on a very low efficiency level. In the current fiscal year, NTPC plans to add 3,100 MW capacity and another 5,500 MW in FY12.