Indian stock markets indices are trading weak over the last two hours of trade on the back of heavy selling activity witnessed across industry heavyweights. realty and capital goods stocks witnessed maximum selling pressure while pharma and Auto stocks witnessed maximum buying activity.
The BSE-Sensex is down by 173 points, while the NSE-Nifty is down by 49 points. BSE Mid cap index and the BSE Small cap index are down by 0.05% and 0.04% respectively. The rupee is trading at 49.13 to the US dollar.
Energy stocks are trading in the red led by Reliance Industries Limited (RIL) and Petronet LNG. According to a leading financial daily, Gas Authority Of India Ltd. (GAIL) India, along with Oil and Natural Gas Corporation Ltd. (ONGC)'s overseas exploration arm ONGC Videsh Limited (OVL), is planning to bid for UK-based Cove Energy. The consortium may have to quote a price in excess of US$ 1.77 bn, the amount already quoted by Thai firm PTT. Cove is listed on the Alternative Investment Market of the London Stock Exchange. Its main asset is an 8.5% stake in Mozambique's Rovuma Offshore Area1, estimated to have recoverable reserves of 30 trillion cubic feet of natural gas. However the company has said that as of now no decision has been taken by the consortium whether to make an offer for Cove or the price at which any such offer may be made.
Automobile stocks are trading mixed. Maruti Suzuki and TVS Motors are the top gainers, while Tube Investments and Bajaj Auto are at the losing end. According to a leading financial daily, Maruti Suzuki's February sales were up by 6.5%. The company sold 118,949 cars in February 2012 as compared to 111,645 cars in the same month last year. Sequentially the car sales are up 3%. Domestic sales increased by 6% YoY while exports were up by 11.8%. We may note here that Maruti's super compact Dzire's sales jumped by 58.8% while those of its mini cars including Alto, A-Star and WagonR were down 8%.