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Auto stocks lead the downfall
Fri, 9 Dec 11:30 am

Indian stock markets indices are trading weak over the last two hours of trade. Auto and Power stocks witnessed maximum selling pressure while pharma stocks witnessed maximum buying interest.

The BSE-Sensex is down by 230 points, while the NSE-Nifty is down 61 points. BSE Mid Cap index and the BSE Small Cap index are down by 0.63% and 0.67% respectively. The rupee is trading at 52.17 to the US dollar.

Aluminium stocks are trading weak led by Hindalco and NALCO. According to a leading financial daily, National Aluminium Company Limited (NALCO) is facing delays in its Orissa expansion plans. The company is still awaiting allotment of land and water by the Orissa government for its proposed 0.5 m tonne aluminium smelter plant. The company is investing Rs 160 bn for the plant. Without the allocation of land and water, the company cannot apply for coal block for captive power generation. The feasibility study for the project is already completed. Apart from the smelter plant, the company has proposed to add 1 m tonne capacity in alumina production with an investment of Rs 60 bn. The company is also awaiting clearances for extracting Pottangi bauxite reserves in Orissa, already allocated to them, to be able to scale up its total alumina capacity to 3.1 m tonne from the present 2.1 m tonne.

Real Estate stocks are trading in the red. Housing Development and Infrastructure Limited (HDIL) and Unitech are the biggest losers while Peninsula Land and Sunteck Realty are the biggest gainers. According to a leading financial daily, DLF Limited is planning atleast two to three big ticket sales in early 2012 in order to reduce its debt. The developer will have to fetch Rs 30 bn to Rs 35 bn from non-core asset sales in order to reach its FY12 debt target. It may be noted that the company is looking to sell stake in its Pune IT Special Economic Zone (SEZ) as well as in the Noida IT SEZ. The company is also planning to sell Aman Resorts (excluding Delhi hotel). The Pune SEZ deal could be worth Rs 9 bn and the stake sale in Noida SEZ could fetch the company around Rs 4 bn. The Aman resorts could fetch the company Rs 200 bn.

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