Indian share markets pare gains
Indian equity markets reversed some gains in the last two trading hours but indices remained well above the dotted line. Most of the sectoral indices are trading positive with consumer durable, banking and capital goods stocks being the biggest gainers. Only IT stocks are trading weak.
The BSE-Sensex is trading up 70 points and NSE-Nifty is trading up 21 points. BSE Mid Cap index and BSE Small Cap index are trading up by 0.6% and 0.8% respectively. The rupee is trading at 55.6 to the US dollar.
Majority of the mining stocks are currently trading in the green with Gujarat NRE Coke and Coal India being the biggest gainers. As per a leading financial daily, Coal India Ltd. (CIL) has hiked prices of non-coking coal mined from select blocks of Western Coalfields by an average of 10-15%. Resultantly, non-coking coal with gross calorific value (GCV) between 2,200 Kcal/Kg and 2,500 Kcal/Kg will be priced at Rs 430 per tonne for power utilities and at Rs 580 per tonne for others. It may be noted that CIL had earlier rolled back price-hikes under the newly adopted GCV after protests by end-users. Reportedly, prices have been hiked to cover the loss after rollback. CIL had shifted to the internationally followed GCV pricing mechanism from January 2012 under which prices are linked to the quality of coal. The company earlier followed Useful Heat Value (UHV) formula under which ash and moisture content were deducted from standard formula to arrive at the coal price.
Stocks of engineering companies are trading firm led by Suzlon Energy, AIA Engineering, and Cummins India. A leading business daily has reported that India's largest engineering company, Larsen & Toubro Ltd is looking at selling stake in its infrastructure unit. The reason for the same is to raise capital for its economic growth driven demand for roads, ports and bridges. As per the management, the company would be selling stake in L&T Infrastructure Development Projects Ltd to share risk. It is reported that the company is looking at offloading a minority stake for as much as US$ 500 m. It is believed that this business segment is currently handling projects worth Rs 450 bn or US$ 7.9 bn. These include 19 road projects and three port developments. As reported, the largest contract of the division is the Rs 164 bn southern Hyderabad metro rail project.
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