Indian stock market indices shed the morning losses and traded in the positive during last two hours of trade. Most of the sectoral indices traded positively led by banking and capital goods stocks. However, oil and gas, power and consumer durables were among the losers.
The BSE-Sensex is trading up by 46 points and NSE-Nifty is trading firm by 19 points. BSE Mid Cap and BSE Small Cap indices are trading firm by 0.4% and 0.5% respectively. The rupee is trading at 53.57 to the US dollar.
Power stocks are mainly trading in the red led by National Hydel Power Corporation Ltd (NHPC Ltd) and CESC Ltd. As per a leading financial daily, Tata Power has completed the signing of financial agreement for its 25 megawatt solar project in Gujarat. The project that is costing Rs 3.65 bn will be funded through a mix of debt and equity in the ratio 70:30. A subsidiary of Tata Power "Tata Power Renewable Energy Limited" has arranged for the debt through a consortium of domestic lenders. The list of lenders includes names like State Bank Of India (SBI), Export Import Bank of India. Financial advisory for the transaction will be provided by SBI Capital Markets Limited. The power project is expected to make use of crystalline silicon photovoltaic technology. It will be one of its kinds in India and by the end of December 2011 it will be functional.
PSU banking stocks are trading firm today led by Vijaya Bank and SBI. As per a leading financial daily, the Government has created a slot for an additional Executive Director (ED) in the PSU banks. As per the announcement, large banks like Bank Of Baroda (BOB) and Punjab National Bank (PNB) will get their third ED on the board from April next year. Large banks are the ones that have business of more than Rs 3000 bn. Smaller banks like Dena Bank and United Bank will get their second ED. The third ED will be responsible for human resource development and technology. This will ensure that human resource development falls under the direct purview of the board. Other banks that are likely to benefit from this are Bank of India, Canara Bank, Central Bank of India and Union Bank of India.