Indian share markets continued to trade weak in the post-noon trading session. Majority of the sectoral indices are trading in the green led by FMCG and capital goods. Realty and oil & gas stocks are the biggest losers today.
Energy stocks are trading mixed with Indraprastha Gas and HPCL being the major gainers. However, Oil and Natural Gas Corporation (ONGC) and Cairn India are among the major losers. As per a leading financial daily, the government has given a green signal to 30 oil & gas projects belonging to Cairn India and ONGC. The projects were stuck up in contractual disputes and the clearance was given by approving a policy framework for relaxations, extensions and clarifications in timelines prescribed for discoveries. This is likely to provide more operational flexibility to oil & gas companies in exploration activities. The clearance of the 30 projects will aid in the utilization of about 34 m barrels of oil and around 0.7 trillion cubic feet (TCF) of gas.
Most of the auto ancillary stocks are trading in the green with Sona Koyo Steering and Amtek Auto being the biggest gainers. But Bharat Forge and Exide Industries are trading in red. As per a leading financial daily, the Auto Component Manufacturers Association (ACMA) has demanded that the excise duty be rolled back to 10% in the Union Budget FY15. The excise duty on auto components rose to 12% after the expiry of duty concessions on 30th December 2014. Among other things, ACMA has also demanded the implementation of GST at the earliest and elimination of the customs duty on alloy steel. The industry body has stated its target of growing export revenues to $35-40 bn over the next five years.