Stock markets regain lost ground

Thu, 26 Apr 01:30 pm

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Indian stock markets recouped losses and traded marginally above the dotted line in the last two trading hours. The sectoral indices are trading mixed with metal, consumer durables and IT leading the gains and PSU, Auto and banking stocks being the biggest losers.

The BSE-Sensex is trading up 6 points and NSE-Nifty is trading marginally down. Both BSE Mid cap index and BSE Small cap indices are marginally down. The rupee is trading at 52.5 to the US dollar.

As per a leading financial daily, the government has invoked special powers under Electricity Act 2003 and has issued a directive to the central commission to frame regulations for the implementation of open access reform. Open access gives electricity consumers the freedom to choose the source of electricity giving them the right on transmission and distribution system for power transfer. Distribution companies had been opposing the implementation of the reform as they feared losing their high-tariff paying industrial consumers. The open access reform, once in force, is expected to benefit large power consumers particularly sick textile, cement and steel industrial units in getting assured electricity supply at reasonable rates. This move will also increase business of power bourses and power traders which include National Thermal Power Corporation (NTPC), PTC India Ltd, Tata Power and Reliance Infrastructure.

Most of the energy stocks are trading positive with Gujarat Gas and Gujarat State Petronet being the biggest gainers. As per a leading financial daily, Gujarat Gas Gujarat Gas Company (GGCL) has signed an asset exchange agreement with Gujarat State Petroleum Corporation (GSPC). As per the agreement, Gujarat Gas will withdraw its application with the Petroleum and Natural Gas Regulatory Board (PNGRB) for authorization for its gas distribution network in South Gujarat (Valsad and Navsari districts) and Union territories of Daman & Silvassa. GSPC will also withdraw its authorization application for certain areas in Bharuch district (excluding Dahej and its surrounding areas in Vagra Taluka). Gujarat Gas will transfer its gas distribution assets in Vapi to GSPC Gas in exchange for GSPC Gas' CNG assets in Bharuch district on an 'as is' basis. GGCL will be paid an independently determined amount by GSPC as net consideration. The move is expected to consolidate GGCL's gas distribution operations in Bharuch district. Both the companies will be free to bid, either individually or jointly, for any geographic area when the bidding process is initiated by the PNGRB.