Oil & gas stocks are trading firm led by Chennai Petroleum and Indian Oil Corporation. According to a leading daily, Hindustan Petroleum Corporation Limited (HPCL) is planning to invest Rs 6-7 bn towards cavern storage of Liquefied Petroleum Gas (LPG). This facility in Mangalore will be the second underground LPG storage facility of HPCL. HPCL is thinking of partnering with Total SA of France, to build the cavern. The petroleum company is of the view that in the wake of huge demand for LPG, it would make more sense to import in large quantity rather than smaller ones. HPCL has 26% market share in the LPG segment.
Automobile stocks are trading mixed with Eicher Motors and Force Motors leading the gains while Hero MotoCorp and Tata Motors are trading weak. As per a leading daily, Hero MotoCorp has started its operations in 3 Latin American countries namely, El Salvador, Honduras and Guatemala. The automobile company dispatched the first consignment of two-wheelers to these three countries in Latin America just a few weeks back. Hero is also actively exploring the possibility of setting up assembly units in some of these markets once the volumes pick up. Hero plans to expand to 30 countries globally across Africa, Latin America, Central America and South-East Asia. Post the separation with Honda, Hero is focusing on international operations and is aiming at getting 10% of its total volume from international business in the next 5 years.