Indian stock markets move into red

Mon, 18 Jul 01:30 pm

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Indian stock market indices moved into the red due to selling pressure in the heavyweights over the last two hours of trade. Stocks from software, auto and healthcare space are losing the most while those from realty and power space are trading firm.

The BSE-Sensex is down down 45 points while NSE-Nifty is trading 15 points below yesterday's closing. However, the BSE Midcap and BSE Small cap indices are up by 0.3% and 0.5% respectively. The rupee is trading at 44.60 to the US dollar.

Engineering stocks have been trading mixed with Alstom Projects, BHEL and Alfa Laval leading the pack of gainers. However, Thermax, Everest Kanto Cylinder and Larsen and Toubro (L&T) are trading weak. As per a leading financial daily, Bharat Heavy Electricals Ltd (BHEL) has announced the successful commissioning of the country's first thermal set of 525 MW rating at Maithon Right Bank Thermal Power Project in Jharkhand. The corporation had won the order for the 2x525 MW greenfield power project while outbidding a leading Chinese equipment supplier under an international competitive bidding process from Maithon Power Ltd (MPL). The latter is a joint venture company of Tata Power and Damodar Valley Corporation (DVC). This was the first order secured by BHEL for the new rating units of 525 MW. It was followed by orders for four more such units, taking the number of 525 MW sets contracted to six so far. In a separate news, management of state owned West Bengal Power Development Corporation (WBPDC) has asked BHEL, which is already installing the power units, to plan for another 500 MW unit at the same location.

Power stocks have been trading mixed as well in the last two hours of the trade led by PTC India, Tata Power and Coal India. However, CESC Ltd and NTPC are trading weak. As per a leading financial daily, Reliance Infrastructure's (RInfra) arm Reliance Sealink One Pvt Ltd, in joint venture with Hyundai Engineering, has tied up the entire debt of Rs 20 bn with ICICI bank for Mumbai's Worli-Haji Ali sea link . The loan includes an external commercial borrowing of US$150 m, at an average rate of 10%. However, as per the sources involved, the project may be delayed by another 2-3 months because of pending issues related to financial obligations of state authorities. It will first wait for sorting the issues of viability gap funding or financial support to make infrastructure projects commercially viable. RInfra would be investing Rs 12 bn into the equity of the project. The project would also get a viability gap funding of Rs 14 bn in phases over the next three years. The stock of the company is trading up.