Realty, metal stocks weigh on markets

Fri, 15 Jul 01:30 pm

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Indian stock market indices continued to trade in the red over the last two hours of trade. Stocks from realty , metal and auto space are losing the most while those from software and oil and gas space are trading firm.

The BSE-Sensex is down by 65 points while NSE-Nifty is trading 24 points below yesterday's closing. The BSE-Midcap index is down by 0.1% while the BSE-Small cap index is trading up by 0.1%. The rupee is trading at 44.54 to the US dollar.

Power stocks have been trading mixed with GVK Power and Power Grid Corporation leading the pack of gainers. However, Reliance Power and Coal India are trading weak. As per a leading financial daily, NTPC has dropped or frozen its plan to set up a 1,320 MW power plant at Santaldih. The investment related to the project is estimated at Rs 80 bn. Earlier, the company had issues regarding land acquisition for Rs 96 bn project for a 1,600-MW unit in Katwa. However, land is not an issue this time as West Bengal Power Development Corporation (WBPDCL) already has 980 MW capacity at Santaldih, one of the oldest power projects in the state. There are four units of 120 MW and two units of 250 MW each. As per NTPC's top official, the company is still considering the project but wants to take one at a time. It expects the new government to settle the problems with the Katwa project first. If the project is withdrawn, it will be a huge set back to West Bengal's industrial sector. The stock of the company is trading in the red.

Telecom stocks have been trading mixed as well in the last two hours of the trade led by ADC India Communications and AGC Networks. However, Reliance Communications and Tata Teleservices (Maharashtra) are trading weak. As per a leading financial daily, Vodafone, Idea Cellular and Bharti Airtel have decided to complement their nationwide presence by using each other's networks. The networks will be used through inter and intra circle roaming agreements to provide for seamless low cost pan India 3G services to their customers. The deal will allow 3G users of any of these three companies to connect to the others' 3G network in areas where the user's mobile operator doesn't provide those services. As per the reported sharing agreement, Idea has entered an agreement with Vodafone to introduce 3G services in Delhi and Kolkata circles and it will also collaborate with Airtel to provide 3G services in Karnataka. Vodafone has partnered with Idea to provide 3G services in Kerala and Andhra Pradesh and it plans to introduce these services in UP (West) through Airtel's network. Airtel has partnered up with Idea to share the latter's 3G network in Gujarat. As of now, the details on revenue sharing mechanism among these operators have not been provided. The stocks of Idea Cellular as well as Bharti Airtel are trading weak.