FMCG, metal stocks propel the mkts.

Wed, 29 Jun 01:30 pm

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Indian stock markets continued to trade in the green over the last two hours of trade. All sectoral indices are trading firm. Stocks from the FMCG, metal, power and consumer durables are the main gainers.

The BSE-Sensex is trading up by 180 points while NSE-Nifty is trading 51 points above the dotted line. The BSE Midcap and BSE Small cap indices are up by 0.7% and 0.8% respectively. The rupee is trading at 44.92 to the US dollar.

Power stocks are currently trading mixed with CESC Ltd, PTC India Ltd and Reliance Infrastructure leading the pack of gainers. However, Reliance Power and Coal India are trading weak. As per a leading financial daily, NTPC has been asked to shut down its four power generation units at Talcher Super Thermal Power Station (TSTPS) in Kaniha as the company failed to take appropriate fly ash management measures . The order has come from Orissa State Pollution Control Board (OSPCB). The Stage II of the NTPC plant includes four units of 500 mw each. The pollution board order came after its scientists took notice of the actions taken by the company post the ash pond breach on June 3. The latter had led to spread of ash slurry into open fields and even threatened contamination of river water. Hence, the board had inquired into the incident and suggested measures. The same revealed that the company's existing ash management measures are not in tune with what the board had suggested. Going by the current capacity, the ash ponds are not expected to last till October. Besides, building new dykes is expected to take at least a year. Amidst these concerns, the company has been ordered to reduce its power generation capacity, which in turn will reduce ash generation and at the same time go in for alternative ash management. However, the stock of the company is trading in the green.

Engineering stocks are trading mixed as well led by Welspun Corp, Everest Kanto Cylinder and TRF Ltd. Alstom Projects and Ingersoll Rand are trading in the red. As per a leading financial daily, Larsen and Toubro may seek a partner for its electrical and automation business to expand the company's product portfolio after spinning off the unit. The company plans to enhance its product range by entering into a joint venture with a foreign company. As per the management, negotiations with possible partners may take time.

The shareholders of the company had approved a plan last month to split the division making electrical meters, switchgears and industrial automation products into a separate entity that it will control. To capitalise on India's proposal to spend US$ 1 trillion in the five years up to 2017 to improve infrastructure such as airports and highways, the company is spinning off some businesses. The stock of the company is trading flat.