Indian stock markets indices are trading strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. Realty and Capital goods stocks witnessed maximum buying interest.
Energy stocks are trading strong led by Essar Oil and Cairn India. According to a leading financial daily, Reliance Industries will now charge a marketing margin of USD $0.15 per million British thermal units (mmBtu) over-and-above the gas sale price. Earlier the government has sent Reliance's USD $0.135 marketing margin on the sale of KG-D6 gas to the oil regulator for approval. The company has also invited bids to purchase 3.5 million cubic meters a day of coal-bed methane (CBM) which it plans to produce from its Sohagpur block in Madhya Pradesh by 2014 end. Reliance had originally proposed a USD $0.15 per mmBtu marketing margin for KG-D6 gas to cover risks like seller liabilities in case of non-supply, customers drawing less than their quota, non-payment of dues and settlement of disputes, but later agreed to a charge of USD $0.135 per mmBtu.
As per a leading financial daily, plastic products company Supreme Industries is targeting a 20% growth in revenues in fiscal ending June this year. As per the management, setting up of new manufacturing plants by corporates in India will boost the demand for plastics in the country. Consumption of plastics is expected to go up from 8 m tonnes in FY 2010-11 to 20 m tonnes by 2020. At present plastic consumption is growing at 12 percent every year. It may be noted that Supreme Industries manufactures a wide range of plastic products including piping systems, packaging products, industrial components, material handling systems. The company is expecting growth from all these segments of business. However, slight slowdown in growth may take place in the industrial segment that supplies to automotives, electronics and appliances sectors.