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After opening firm, the Indian Indices shed their early gains and went on to trade in the red. However, presently they are trading marginally higher. Barring FMCG stocks, sectoral indices are trading positively with pharma, metal and capital goods sectors leading the gains.
The BSE-Sensex is trading up by 11 points (0.04%) and the NSE-Nifty is trading up by 4 points (0.1%). The BSE Mid Cap index is trading up by 0.8% while the BSE Small Cap is trading up by 1.1%. Gold prices, per 10 grams, are trading at Rs 25,250 levels. Silver price, per kilogram, is trading at Rs 33,981 levels. Crude oil is trading at Rs 2,366 per barrel. At the time of writing, the rupee was trading at 66.62 to the US$.
Power stocks are trading on a mixed note with PTC India Ltd and Neyveli Lignite leading the gains. Reportedly, NTPC has urged the Delhi government not to shut down its coal-based Badarpur thermal power plant. This comes a week after the company being served a closure notice for being a contributor to air pollution.
The company, in its reply to this notice, said that the functioning of the said plant meets pollution norms and is essential to meet the capital's power needs. The company also said that while it was asked to switch to cleaner fuel like gas, it could not do so due to unavailability of the same.
The government has also issued a closure notice for the company's Rajghat plant.
The government is yet to issue its final order on the matter. The decision for shutting down the two power plants comes with the government's proposed measures to control rising air pollution in the city.
NTPC Ltd is India's largest power generating company, both in terms of installed capacity and generated output. The company had, earlier this month, raised Rs 5 billion through private placement of secured non-convertible debentures at a coupon of 8.19% with a 10 year door to door maturity. The proceeds of the same are going to be utilized to finance capital expenditure of the company.
Rahul Shah, Managing Editor of Microcap Millionaires, recently released a detailed analysis of the company's results (subscription required) for the quarter ended September 2015. In the note Rahul explains factors driving the performance of the company in this period and what to expect going forward. If you are interested in the stock, then this is a must read!
Stocks in the mining space are trading on an encouraging note with Ashapura Minechem and NMDC Ltd witnessing maximum buying interest. As per an article in Economic Times, the government has allowed commercial coal mining by central and state utilities. This comes after the Cabinet Committee on Economic Affairs (CCEA) gave its approval for allotting coal mines to central and state PSUs for sale of coal. This move will resume the commercial mining by state corporations that were barred by the Supreme Court in September 2014.
Further, the government also approved auctioning of isolated coal and ignite blocks to companies for producing gas through underground coal gasification. The bidding for this will be held on the lines of revenue sharing auction model of coal bed methane (CBM) blocks. It is reported that the Central Mine Planning and Design Institute Ltd will be responsible for preparing bid documents, conducting the bidding process, evaluation of bids and monitoring.
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