Taking global cues...

After three straight days of gains in the previous week, the Indian markets have opened this week on a volatile note, seemingly taking cues from the global markets and mixed results from India Inc. Currently, mixed interest is being seen in index heavyweights and stocks from the auto, banking, software and energy sectors.

The BSE Sensex is trading at 6,341 (down 6 points) and the Nifty is trading at 1,962 (down 5 points). The rupee is trading at Rs 43.71 per US Dollar.

Power stocks have opened today on a weak note with marginal losses being seen in NTPC, Tata Power (TTPW.BO, news) and Reliance (RELI.BO, news) Energy. The decline in these stocks seemingly stems from reports in leading business dailies that the Indian power industry is again 'on its way' of failing to meet the generation capacity addition target it had set earlier for the 10th five year plan (2002-07). As per the report, the sector, which was projected to add around 41,000 megawatt (MW) of generation capacity during these years 2007, is likely to fall behind by around 24%! What's appalling, however, is the fact that the private sector will fall short by 57% of its capacity addition plans of around 7,100 MW. This is reportedly on account of a financially unviable transmission and distribution segment and absence of any payment security mechanism for the private sector power companies. Overall, this is bad news as power plays the utmost role in growth of any economy, more so for a developing economy like ours that continues to suffer on account of power deficits.

The US markets continued with their roller coaster ways as they closed the last trading day of the previous week in the red. While the Dow lost 0.6%, the NASDAQ closed 1.5% down. In fact, the whole of the week saw the US markets move on an uncertain path as they rose and fell on alternate days. While gains on Monday, Tuesday and Thursday were propelled by strong earnings announcements from some large American corporations, Wednesday and Friday were burdened by apprehensions of a faster rise in interest rates on account of the rising inflation pressures.

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