Indices in the equity market in India did make a valiant attempt to break into the positive toward the closing stages. However, it did not prove to be enough as they still managed to close the day significantly in the red. Thus, while BSE-Sensex edged lower by around 90 points, NSE-Nifty lost in the region of 25 points (down 0.5%). BSE Mid cap and BSE Small cap indices went separate ways as while the former closed higher by around 0.4%, the latter closed 0.6% lower.
The GDP shocker in the form of a below par 5.3% GDP growth in fourth quarter of FY12 was the key reason behind today's fall we believe. However, markets did well to recover partially from the same, giving out indications that the news has already been digested and another event is now being awaited. Although the same may or may not come, current levels are good enough for investors to make handsome long term gains. The key is to stick with companies carrying good fundamentals and having good management teams at the helm.
Bharat Heavy Electricals Limited (BHEL), the domestic power equipment behemoth closed marginally higher on the bourses today. The optimism seemed to have emerged on account of news that the company has bagged an order worth Rs 11.4 bn from NTPC for supply and installation of the main plant package for a power project in the state of Madhya Pradesh. The project involves one thermal power generating unit of 500 MW. The unit is being set up under the Mega Power Project policy of the Government of India and reinforces BHEL's pre eminent position in the execution of thermal power projects involving high quality equipment, suited to Indian coal as well as conditions.
Steel Authority of India (SAIL), India's largest steel producer in the public sector, has signed a 50:50 JV with Burn Standard Company (BSCL) for the setting up of a wagon components manufacturing facility at the premises of BSCL in West Bengal. The JV will have a capacity to produce 10,000 bogies and 10,000 couplers per annum. The total outlay for the project is likely to be in the region of around Rs 2 bn. SAIL closed higher by around 2% on the bourses today.