Back in the positive...

The indices recovered their early losses and have moved into the positive territory during the previous hour of trade. While strength in select heavyweights has lifted the Sensex higher, the Nifty is currently bogged down by the weakness in ONGC. Further, while energy, engineering, petrochemicals and pharma are trading mixed, FMCG, auto and cement stocks have shed some gains.

The BSE Sensex is trading at 6,516 (up 23 points) and the NSE Nifty is trading at 2,036 (up 1 point). The rupee is trading at 43.58 to the dollar.

As per a leading business daily, Raymond will invest Rs 1 bn in augmenting its denim capacity by 10 m metres per annum, which would take the company's total denim capacity to 40 m metres per annum, thus positioning it as the largest player in specialized ring denim in the country. The management has expressed optimism over the prospects for denim over the next 2 to 3 years. 60% of Raymond's denim is exported. The company has also formalized a Rs 2 bn deal with an Italian textile company for setting up a 50:50 joint venture. The joint venture will set up a greenfield facility at Kolhapur to manufacture cotton and cotton linen shirting fabrics with a capacity of 11.5 m metres. The company has cash reserves of Rs 6 bn, which will be sufficient to fund the projects. However, the Raymond stock is currently trading marginally lower.

Power stocks are trading a mixed bag with stocks like PTC (2%), Reliance (RELI.BO, news) Energy (1%) and NTPC (1%) finding some interest among investors while Tata Power (TTPW.BO, news) (1%) is trading lower on account of profit booking. As per reports, NTPC plans to generate 164 bn units of electricity in the coming fiscal year. An MoU was signed by the company's chairman with the power ministry which includes targets relating to various projects including 1,300 MW each at Kawas and Gandhar, 800 MW Koldam hydro power, and other projects.

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