Indian share markets soar higher
Led by persistent buying across heavy-weights, Indian share markets continued to escalate in the last two trading hours. All the sectoral indices are trading positive with capital goods, power and banking stocks being the biggest gainers.
The Sensex today is trading up 364 points and NSE-Nifty is trading up 106 points. BSE Mid Cap index and BSE Small Cap index are trading up by 1.3% and 1% respectively. The rupee is trading at 56.2 to the US dollar.
Majority of the banking stocks are trading in green with UCO Bank and Central bank leading the gainers. As per the Financial Stability Report of the Reserve Bank of India (RBI), the banking industry has been in the dock on account of rising incidence of restructuring of loans extended to the aviation and power sectors. As per the report, the two sectors account for 23% of the total restructured portfolio of banks. Of the total loans, the banks restructured 12% loans for the airlines industry and 11% loans for the power sector in the March 2012 quarter. RBI feels that policy paralysis and financing constraints is not likely to improve the situation in the near future.
Majority of the mining stocks are trading in green with National Mineral Development Corporation and Coal India being the biggest gainers. As per a leading financial daily, Hindustan Zinc has chalked out investments of Rs 20.2 bn to improve mining operations at its Rampur Agucha and Sindesar Khurd mines in Rajasthan. The company plans to fund the capital expenditure through internal accruals. The projects are expected to be completed by 2017. Reportedly, Rampur Agucha is the world's largest zinc producing mine with proven reserves of 110.4 m tonnes while currently 6.2 mtpa is being extracted from the mine. Hindustan Zinc plans to extract zinc below the mine's open pit operating level of 372 meters using vertical hoisting shaft reaching a depth of 950 m. In case of silver-rich Sindesar Khurd mine, the company wants to increase mining operations to double it silver production to 500 tonnes by FY14. The company has set up a silver refinery with a capacity of 518 tonnes per annum to process silver extracted from the mine.
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