Steel stocks are mainly trading in the red led by Tayo Rolls and Hindustan Zinc. As per a leading daily, Steel Authority of India (SAIL) has entered into a joint venture (JV) with Kobe Steel, a Japanese steel making company to set up a commercial plant for making iron ore nuggets. The 50:50 JV will attract an investment of Rs 15 bn and the plant will be operational in 2014. The new plant will be in Durgapur in West Bengal and will have a production capacity of 0.5 m tonnes of iron ore nuggets per year. It is likely to use the Japanese partner's patented iron ore making technology.
Power stocks are trading firm today with GVK Power and Infra and PTC India Ltd leading the gains. As per a leading financial daily, National Thermal Power Corporation (NTPC) has signed an agreement with Madhya Pradesh Power Trading Company to supply electricity in the form of solar power to the state. NTPC would supply this from a 50 megawatt power plant that it proposes to establish in Rajgarh. This follows NTPC's objective to generate 500 megawatt from renewable sources in the next 5 years. For this, it has gotten into a joint venture with the Asian Development Bank and Japan's Kyuden International Corporation.