Indian stock market indices traded in the positive during the last two hours of trade on the back of buying interest across index heavyweights. All sectoral indices are trading in the green except for IT stocks.
The BSE-Sensex is trading up by 58 points and NSE-Nifty is trading firm by 10 points. BSE Mid Cap and BSE Small Cap indices are trading strong by 0.9% and 1.4% respectively. The rupee is trading at 52.72 to the US dollar.
Engineering stocks are trading in the green led by ABB and Everest Kanto. As per a leading financial daily, ABB has received an order worth Rs 40 bn from Power Grid Corporation. The order is to deliver ultra high voltage transmission system. This system will supply hydroelectricity from north East India to Agra. When completed, the project will have a converter capacity of 8,000 megawatt and will be supplying electricity to 90 m people. The order includes Rs 5 bn for supplying equipments and the remaining amount for designing and engineering services provided. The said project will begin operations from 2015.
PSU Banking stocks are trading firm today. Corporation Bank and United Bank of India are leading the gains. As per a leading financial daily, the Reserve Bank of India is worried about bad loans in several sectors. This concern arises due to the fact that bad loan growth in India this year has been three times the average growth in the last 5 years. These bad loans are mainly in retail, priority sectors and infrastructure. What is worrying the Resere Bank Of India (RBI) the most is the loans given to companies in the power sector. As per a stress test conducted, the bad loans will affect the banks' profits and may force some of them to raise capital.