Indian stocks up on global cues

Tue, 23 Mar 09:30 am

   Previous Close   

   Pre-Open   

   11:30 am   

   01:30 pm   

   Closing   

After yesterday's weakness, the Indian markets have started today's session on a strong note. The benchmark indices opened today above the breakeven mark and have managed to hold on to their gains since then. Other key Asian markets are trading in the green with Indonesia (up 1.5%) leading the pack of gainers. The US markets closed higher by 0.4% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading in the green with metal stocks attracting investors' interest. The BSE-Sensex is trading higher by around 85 points, while the NSE-Nifty is up by about 25 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.8% and 1% respectively. The rupee is trading at 45.53 to the US dollar.

Power stocks have opened the day on a positive note. Gainers here include Torrent Power and CESC. As per a leading business daily, the Comptroller and Auditor General of India (CAG) will examine the contracts entered into by NTPC with various suppliers and contractors. It seeks to find out the reasons for the delays in implementation of NTPC's power projects. More than a dozen large projects of the thermal power giant are stuck at various levels of implementation, due to contractual loopholes. Such loopholes are responsible for the commercial disputes in projects like the Barh Stage-I project in Bihar and the Sipat-I project in Chhattisgarh. In our view, this is a much needed exercise as NTPC is the single largest driver of India's power capacity addition program. It was supposed to add nearly one third of the 78,000 MW target in the 11th plan.

Auto stocks have opened the day on a positive note. Gainers here include Escorts and Eicher Motors. As per a leading business daily, Tata Motors has signed an agreement with the Myanmar government for setting up a heavy truck plant with an initial capacity of 1,000 vehicles per year. The capacity will subsequently be expanded to 5,000 units per year. The plant is expected to be operational by the last quarter of FY11. It will be funded by a line of credit from the Indian government. It may be noted that Tata Motors has given a significant thrust in recent years on increasing its geographical presence. Currently, the company has developed its presence in several countries in the European, African, South American, South East Asian and Middle East regions.