Realty stocks lead markets higher

Wed, 18 Aug 09:30 am

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The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have remained firmly in the positive territory. Other key Asian markets are in the green with Japan (up 0.4%) leading the pack of gainers. The US markets closed higher by 1% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading strong with realty and metal majors finding investors' favour. The BSE-Sensex is trading higher by around 55 points, while the NSE-Nifty is up by about 20 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 0.6% and 0.5% respectively. The rupee is trading at 46.6 to the US dollar.

Engineering stocks have opened the day on a positive note. Gainers here include Engineers India and Crompton Greaves. As per a leading business daily, NTPC and BHEL's joint venture (JV) NTPC-BHEL Power Projects is likely to rope in a global technology provider and offer a minority stake. The technology would be mainly used for coal and ash handling plants of the projects taken up by the JV. The 50:50 JV between NTPC and BHEL carries out engineering, procurement and construction contracts, besides manufacturing and supplying equipment for power plants. It has an order book of about Rs 4.5 bn. It is targeting an order book of Rs 70 bn by the end of FY11. Currently, it is working on the 100 mega watt (MW) Namrup Power Station in Assam and the 726 MW combined cycle power plant being set up by ONGC Tripura Power Corporation at Palatana, in Tripura. It is also working on the 500 MW Singrauli thermal power plant and the 600 MW thermal power plant of Andhra Pradesh Power Generation Corporation at Rayalseema.

Financial stocks have opened the day on a strong note. Gainers here include IFCI and IDFC. As per a leading business daily, Power Finance Corp and Rural Electrification Corp will lend Rs 95 bn for setting up two major power plants in Andhra Pradesh. PFC will lend Rs 68 bn to the Power Generation Corporation of Andhra Pradesh for setting up the 1600 MW Vadarevu Thermal Power Project (Phase-1) in Prakasam district. It will lend the money at a reduced interest rate of 10.5%. REC will extend a loan of Rs 27 bn to the long-delayed 700 MW gas-based power generation station (Phase-1) to be set up in Karimnagar district. These two projects would add 2300 MW of power to the state in the next four years.