Indian stock markets move into red

Fri, 1 Jul 01:30 pm

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Indian stock markets lost all the morning session gains over the last two hours of trade and are now trading in the red. Stocks from the consumer durables, oil & gas, and auto are the main losers while those from the realty and software space are trading firm.

The BSE-Sensex is trading down by 105 points while NSE-Nifty is trading 29 points below the dotted line. However, the BSE Midcap and BSE Small cap indices are up by 0.2% and 0.4% respectively. The rupee is trading at 44.62 to the US dollar.

Construction stocks are currently trading mixed with DLF Ltd and Peninsula Land leading the pack of gainers. However, Reliance Industrial Infrastructure and Welspun Projects are trading weak. As per a leading financial daily, DLF, the country's largest real estate company has managed to sell 400 plots just in one day. The company has realized sales of Rs 700 crore. The plots were priced between Rs 1.2 crore to 2 crore. According to the reports, the sales realizations will accrue to the company over the next two years. The company had launched these plots on Thursday at a basic selling price of Rs 40,000 per square yard in Gurgaon. The size of the plots varied from 300 square yard to 500 square yard. These plots are a part of the 101-acre township that is under DLF construction. The plots will be handed over to buyers in two years when the group housing gets completed. The company had earlier said that it would focus more on plotted development in the current fiscal rather than group housing for a faster cash flow generation.

Power stocks are trading mixed as well led by NHPC, Neyveli Lignite and GVK Power. PTC India and Coal India are trading in the red. As per a leading financial daily, NTPC has entered into an arrangement with Singareni Collieries Company (SCCL) for 5 million tonnes (mt) of coal to take care of the coal shortages. It is important to note here that the coal ministry had recently cancelled the five coal blocks allotted to the company. As per a company spokesperson, the above arrangement is in addition to the long-term fuel supply arrangement that the power producer has entered into with SCCL for two of the Andhra Pradesh-based power projects at Ramagundam and Simhadri. The company has an operating power capacity of 2,100 mw at Ramagundam that had tied up with SCCL for 10.2 mt of coal on a long-term basis. The third phase of Ramagundam with 500 mw has an agreement with the Western Coalfields for 2.56 mt of coal. In the case of Simhadri facility, NTPC has 1,500 mw of operational capacity and 500 mw under construction in first phase. The company has tied up with SCCL for 10.8 mt of coal on long-term basis. This is apart from another 10.8 mt for second phase to be taken up. The long-term fuel supply arrangement applies only to a plant load factor of around 80-84 %, while the company is operating at over 90 % and it will need additional coal supplies. The company may also use the fresh tie up to meet the coal shortages at its 1,660 mw of Chattisgarh facility if needed. The stock of the company is trading in the red.