Indian stock market indices reversed their earlier losses and are trading flat over the last two hours of trade. Auto and Realty stocks witnessed maximum selling pressure while oil and Gas and Consumer durable stocks witnessed maximum buying interest.
Once BGEPIL exits, ONGC will hold 100% stake in the block. It will complete the minimum work programme for which it will have to spend around US$ 90m. Besides, ONGC will incur additional work programme expenditure of us$ 10.2 m. The liability of around US$ 100 m could be a matter of concern for ONGC. The group will take a decision on the issue in the next Board meeting scheduled on January 4.
As per a survey of purchasing managers, the manufacturing activity in December is six months high, boosted on account of an increase in new orders from both domestic and international clients and a spike in the factory output. The outcome of the survey reflects hopes for Indian economy as manufacturing here is expanding, in contrast to the developed economies where factory activity has seen contraction. As per the monthly official data, the industrial output registered 5.1% decline, the steepest fall since March 2009, in the year to October raising the fear of a slowdown. However, the new orders index was up from 52.8 to 57.9 in November, suggesting that the future output will be better in the coming times.