With sustained selling pressures by heavyweights, Indian stock markets continued to move southwards in the last two trading hours. Most of the sectoral indices are trading negative. Consumer durables, metal and IT stocks are among the handful of gainers.
Majority of the auto ancillary stocks are trading in red. Asahi India, Mahindra Forgings, Sundaram Clayton and Amtek Auto are a few stocks trading in green. As per a leading financial dialy, Amara Raja Batteries is setting up a greenfield battery plant at an investment of Rs 1.9 bn as its existing capacities are sufficient to meet demand until FY13. The new plant is expected to be completed in 12-15 months. The expansion of its office automation battery capacity by 0.2 m units to 2 m units is expected to be completed soon. The company will commence supplying two-wheeler batteries to the Original Equipment Market from the June 2012 quarter onwards. The company stock is down 0.48%.
Majority of the energy stocks are trading in red. Reliance Industries Limited (RIL) (down 2.4%) and Essar Oil (down 2.1%) are the biggest losers. As per a leading financial daily, state-owned refiner Hindustan Petroleum Corporation Ltd (HPCL) will double its crude oil imports from Saudi Arabia and curtail purchases from Iran by over 14% in FY13. In the wake of sanctions imposed by the US and European Union on Iran against its nuclear enrichment program, the Indian refiners are finding it difficult to make payments for the crude oil imports from the country. HPCL stock is down 1.8%.