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Barring Sesa Goa, Mining stocks are trading in the green led by Ashapura Minechem Ltd. As per a leading financial daily, Coal India Ltd. (CIL) will face a legal action initiated by TCI, a UK-based hedge fund. It is important to note here that TCI is the biggest foreign investor in Coal India and has a minority stake in it. The decision has been triggered as CIL is getting ready to sign fuel supply pacts with power firms for a minimum assured supply under a Presidential directive. TCI has accused the company of not taking care of minority shareholders' interest by not opposing such fuel supply pacts that are harmful for company's profitability.
Oil and Gas stocks are trading mixed with Petronet LNG and Indraprastha Gas Limited (IGL) leading the gainers and Oil India and Gujarat State Petronet Limited (GSPL) trading the weakest. As per a leading financial daily, Compressed Natural gas (CNG) prices in Ahmedabad may rise further to Rs 60- Rs 65 per kg by the end of FY13 post reaching level of Rs 50 per kg recently. This is as per Petronet's LNG (PLNG's ) projections regarding price at which it supplies gas to Gujarat State Petroleum Corporation (GSPC) . The projections show a 26% increase from April 2012 to March 2013. The rise could be steeper if rupee depreciates further. The impact will be less in Delhi due to lower VAT there unlike in Gujarat. At the projected levels, the CNG prices in Gujarat will be close to prices of petrol. Also, if prices do rise to this level, it will be unaffordable for the companies to absorb the rise without passing it to end users.