Telecom stocks lead markets higher

Fri, 9 Jul 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened at the breakeven mark, but soon surged in to the positive territory. They have easily managed to hold on to their gains since then. Other key Asian markets are in the green with China (up 1.3%) leading the pack of gainers. The US markets closed higher by 1.2% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with telecom majors finding investors' favour. The BSE-Sensex is trading higher by around 158 points, while the NSE-Nifty is up by about 45 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 0.9% and 0.7% respectively. The rupee is trading at 46.8 to the US dollar.

Banking stocks have opened the day on a positive note. Gainers here include Yes Bank and Lakshmi Vilas Bank. As per a leading business daily, ICICI Bank is planning to raise between US$ 500 m and US$ 700 m in the international market through a five and a half year bonds issue. The exact amount and maturity of the issuance is yet to be decided. The bank will keep an option of redemption of the notes any time. The dollar denominated bonds will be issued by the bank through its Hong Kong branch. The bonds are expected to be priced around 3.2 % higher than 5-year US treasuries. They will be listed on the Singapore Stock Exchange. Their proceeds will be used by ICICI Bank for general corporate purpose. The paper has been rated by Moody's at the same level as India's foreign currency debt.

Power stocks have opened the day on a positive note. Gainers here include CESC and PTC India. As per a leading business daily, NTPC plans to set up a 1,320 mega watt (MW) coal based thermal power project in Gujarat. The state government has given clearance for setting up the project on the surplus land at the existing Dhuvaran plant of the Gujarat State Electricity Corporation. The project will have two units of 660 MW super critical technology using domestic coal blended with imported coal. NTPC is initiating the site specific studies for establishing the techno-economic feasibility of the project. The report is likely to be ready by the end of FY11. It may be noted that NPTC currently has a power generation capacity of over 30,000 MW and is planning to take this capacity to 50,000 MW by 2012.