After opening weak in early trade, Indian stock markets moved deeper into the red as selling intensified during the last two hours of trade. All sectoral indices were trading in the negative led by realty and banking stocks.
The BSE-Sensex is trading down by 245 points and NSE-Nifty is trading down by 70 points. BSE Mid cap and BSE Small cap indices are trading lower by 0.7% and 0.6% respectively. The rupee is trading at 51.27 to the US dollar.
Steel stocks are trading weak led by Tayo Rolls and Adhunik Metaliks. According to a leading financial daily, Steel Authority of India (SAIL) has recently inaugurated two of its rebuilt coke oven batteries (COBs) at its Bokaro Steel plant. These COBs have been re-built at a cost of Rs 5 bn and are completely emission free. These have high level of automation and are expected to increase productivity. Apart from the new 1.2 m tonne per annum cold rolling mill complex, the coil packaging line- 2 was also inaugurated. Rs 30 bn has been invested towards setting up this complex.
Energy stocks are trading in the red led by Reliance Industries and Oil and Natural Gas Corporation Ltd. (ONGC). According to a leading financial daily, Gas Authority Of India Ltd. (GAIL) India is planning to commission first phase of its Kochi-Mangalore Pipeline Project by FY13. Kochi-Mangalore pipeline project consists of two phases. In the first phase, the company will lay 40 km pipeline in Kochi region out of which 33.5 km of pipeline has been welded and lowered so far. In the second phase, GAIL plans to lay pipeline from Kochi to Bangalore / Mangalore. So far, laying contracts have been awarded in January 2012 and mobilization of equipment and manpower is in progress. The company anticipates completion of the second phase in FY14. The company is also planning to double the capacity of Dabhol LNG terminal to 10 m tonnes to meet the growing energy needs of the country.