Indian stock market indices continued to trade weak over the last two hours of trade as selling activity persisted across index heavyweights. Consumer Durables and Capital Goods stocks are witnessing maximum selling pressure, while FMCG and IT stocks are witnessing maximum buying interest.
Power stocks are trading weak. Thermax and ABB are the biggest losers while Suzlon and Power Grid Corporation are the biggest gainers. According to a leading financial daily, India's largest state owned power generating company National Thermal Power Corporation (NTPC) has entered into a loan agreement for Rs 23.4 bn with a consortium of Indian banks for its 340 megawatt (MW) Muzaffarpur thermal power project in Bihar. The 4 banks include State Bank of India, Canara Bank, India Infrastructure Finance Company Ltd (IIFCL) and United Bank of India. Currently NTPC has an installed power generation capacity of over 34,000 MW and it plans to scale up this capacity to 128,000 MW by 2032. The loan proceeds will be used for financing capital expenditure on the Muzaffarpur thermal power project.
Engineering stocks are trading in the red except for Crompton Greaves. According to a leading financial daily, Voltas is facing the problem of labour unrest. Workers of Voltas are protesting against the company's recruitment policy and wages. The main demands of protesting workers are, hiring more permanent employees and equal pay for permanent and contract workers. They claim that the company has hired workers only on contract basis for the last 15 years. The management was quick to rebuff the demands of workers and said that increasing the number of permanent workers was not feasible due to current business environment. If standoff escalates in the coming days, production and sales could get impacted leading to more pain for the company.