Wednesday December 26, 01:30 PM
Inching higher... |
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By Equitymaster.com
Markets gained momentum in the previous trading hour as buying activity continued unabated in the index heavyweights. The overall market breadth is positive with gainers outnumbering losers by a ratio of 4 to 1 on the BSE Sensex. while telecom and engineering stocks are leading the pack of gainers, software stocks are at the receiving end.
The BSE Sensex is trading at 20,095 (up 241 points) while the NSE Nifty is trading at 6,059 (up 74 points). The rupee is trading at 39.38 to the dollar.
Sintex Industries, a dominant player in the plastic and textile business segments, has received shareholder approval for raising approximately US$ 600 m through issue of fresh shares in the domestic as well as international markets. The company plans to raise US$ 300 m in the domestic market and US$ 150 m through an overseas issue. Besides the company would also issue 13.2 m optionally convertible warrants to some of its promoters. The company manufactures a range of plastic products at its 8 plants across India. These broadly fall under the categories of water storage tanks (14% of plastic revenues), pre-fabricated structures (54%) and industrial custom molding (27%). In the textile business, the company is focused on niche offerings, possessing specialisation in men's structured shirting in the premium fashion category wherein it enjoys leadership position in India. The stock is currently up 3%.
NTPC, the country's largest power utility, has decided to take a stand regarding the scrapping of two of its hydro-power projects in Arunachal Pradesh. The state government had scrapped the projects, totalling 4,500 MW, after NTPC declined to pay the upfront fee demanded by the state government in the form of an interest-bearing loan. The Arunachal government had entered into a MoA (memorandum of agreement) with NTPC to build the 4,000-MW Etalin and the 500-MW Attunli projects in the Debang valley on a build-own-operate-maintain (BOOM) basis. However, even before it could complete the techno-economic viability study of these projects, the state government demanded an upfront payment of Rs 2.5 bn, which was not part of the agreement signed earlier. The loan would subsequently get adjusted in the free power sale to the government, but there is no clarity regarding how the loan would be settled if the project did not come through. NTPC has taken the issue to its parent ministry - the ministry of power - as it does not want to let go of these projects. The ministry is likely to convene a tripartite meet - with NTPC, Arunachal Government and power ministry officials - shortly to resolve the issue. The stock is trading 1% higher, while its peers Tata Power (TTPW.BO, news) and Reliance (RELI.BO, news) Energy (each up 2%) are also finding favour currently.
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