After a weak opening, Indian stock markets have been steadily losing ground and continued to remain deep in the red in the last two trading hours. Barring FMCG, all the sectoral indices are trading negative. Realty, banking and power stocks are the biggest losers.
Majority of the auto stocks are in red with Force Motors, TVS Motors and Tata Motors being the biggest losers. After Tata Motors increased car prices to pass on excise duty hikes, Maruti Suzuki has followed suit and has raised car prices by upto Rs 17,000, as per a leading financial daily. The increase in prices will affect the company's models ranging from small car Maruti 800 to mid-sized sedan SX4. According to the company, there has been an average increase of 1.75% in the price of its vehicles post the Budget. The stock price is down 0.4%.
All of the power stocks have been trading negative with Tata Power and PTC India being the biggest losers. In the backdrop of a sharp fall in natural gas output, the Central Electricity Authority (CEA) has said that no new gas-based power plant will be set up in the country till 2015-16, as per a leading financial daily. According to Ministry of Petroleum and Natural Gas, New Exploration Licensing Policy (NELP) gas is expected to slump by 15 mmscmd to 27.6 mmscmd in 2012-13 and further decline by 3.5 mmscmd to 24.2 mmscmd in 2013-14. Reportedly GVK Power had to postpone expansion of its gas-based power projects due to non-availability of gas from KG-D6. The stock is down 3%.