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After opening the day on a flattish note, the Indian indices booked some losses and are presently trading in the red. Sectoral indices are trading on a negative note with stocks from the capital goods, power and oil & gas sectors bearing the maximum brunt.
The BSE Sensex is trading lower by 95 points (down 0.4%) and the NSE Nifty is trading down by 43 points (down 0.6%). The BSE Mid Cap index is trading down by 0.8% while the BSE Small Cap index is trading down by 0.5%. Gold prices, per 10 grams, are trading at Rs 29,576 levels. Silver price, per kilogram, is trading at Rs 37,275 levels. Crude oil is trading at Rs 2,201 per barrel. The rupee is trading at 68.46 to the US$.
Stocks in the steel sector are trading on a mixed note with Tayo Rolls leading the gains and Jindal Steel leading the losses. As per a leading financial daily, Steel Authority of India Ltd (SAIL) is going to invest over Rs 102 billion in mine development as a part of its modernisation and expansion programme.
The company's modernisation and expansion drive is aimed at enhancing its steel production capacity from 12.8 million tonnes per annum (MTPA) to 21.4 MTPA at an indicative investment of Rs 618 billion. The programme is being undertaken at the SAIL's facilities in Bhilai, Bokaro, Rourkela, Durgapur and Burnpur as well as the special steel plant at Salem. This exercise is being funded by internal sources and borrowings.
SAIL, a Maharatna company, is India's largest steel producer. Its capacity expansion is likely to help reduce India's steel imports that are rising on the back of the global steel glut (subscription required).
It should be noted that India has witnessed about 75.5% YoY increase in imports of total steel (alloy and non-alloy) in 2014-15. Further, it witnessed about 24% YoY increase during April-January period of this fiscal. As a result of the global glut, countries such as China are exporting steel at below the cost of production. reduce large scale dumping, the government recently imposed a minimum import price on 173 steel products. One of our articles from the 5 Minute WrapUp has shared some views on the same. You can read it here.
Stocks in the power space are also trading on a negative note with Power Grid and JSW Energy leading the losses. As per an economic daily, Tata Power has received approval from Regional Empowered Committee (REC) of the Union Environment Ministry for setting up of a 52.50 megawatt (MW) wind power project in Koppal district, Karnataka.
The panel gave its clearance for diverting forest land of 36.27 hectare instead of proposed 39.10 hectare in the Hanamasagara protected forest in Koppal district.
The company has been asked to use the existing roads inside the forest land for this project, thereby limiting the requirement of forest land to 36.27 hectare. The proposed project is expected to cater to the power requirement of the state and likely to generate employment opportunity.
Tata Power is India's largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 9,100 MW and a presence in all the segments of the power sector. The company has identified four geographies for driving growth in the future. These geographies are Africa, South East Asia, Middle East and South Asian Association for Regional Cooperation (SAARC).
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