The Indian stock markets started off the day with a bang and traded in a strong positive zone for the entire session today. The government's clarifications on General Anti Avoidance Rules (GAAR) guidelines boosted market sentiment. However the complete details of the changes are still awaited. Positive news also emanated from the eurozone, which also encouraged investors. Eurozone leaders struck a deal by opening the door for rescue funds to help bring down the high borrowing costs of troubled nations.
The indices traded well above the dotted line and the market breadth was positive with 2 times as many advances as declines. While the BSE-Sensex closed higher by around 439 points (up 2.6%), the NSE-Nifty closed higher by around 130 points (up 2.5%). The smaller indices also had a positive day on the bourses. The BSE Mid Cap index and the BSE Small Cap closed 1.6% and 1.3% higher respectively. The Indian indices were the top gainers in Asia. All sectoral indices also saw strong gains today. Capital goods and power stocks especially found favour. Almost all the Sensex stocks closed in the green today.
As regards global markets, Asian indices had a postive outing today. European indices also opened the day well in the positive zone. The rupee was trading at Rs 55.95 to the dollar at the time of writing.
Private power utility company Tata Power Company aims to raise its generation capacity to 26 gigawatt by 2020, from its current capacity of 5.2 GW. It is looking at Indonesia and South Africa for acquiring coal mines for fuel security. The domestic fuel supply shortage has been impacting its operations. The company also recently completed the purchase of 51% equity shares of Tata BP Solar India, which were earlier held by BP Alternative Energy Holdings Limited. Now Tata BP Solar India is a wholly owned subsidiary of the company. Post this positive development the stock closed over 6% higher in trade today.
The power transmission and distribution arm of Larsen and Toubro (L&T) construction has won new orders valued over Rs 10 bn across various business segments in June 2012. A major order worth Rs 8.5 bn has been bagged from West Bengal State Electricity Distribution Company for Rural Electricity Infrastructure in villages of West Bengal under the Backward Region Grant Fund Scheme (BRGF). On the overseas front, new orders worth of Rs 1.6 bn has been garnered from reputed customers in Qatar for electrical network power quality improvement work. This order includes additional orders in ongoing project in Middle East.