Indian stock market indices slipped further into the negative territory over the last two hours of trade. Barring power sector, all sectoral indices were trading in the red, led by metal and realty stocks.
Auto stocks are mainly trading in the red led by Ashok Leyland and TVS Motors. As per a leading financial daily, Maruti Suzuki (India) is planning to re-enter the insurance broking business with a license from regulator. As per the local rules, foreign companies should not hold more than 26% in an insurance venture. The company's parent Suzuki Motor already owns at least 55% stake. Because of the overseas partner's indirect holding, Maruti will not be able to hold a 74% stake. To adhere to the guidelines set by the regulator, Maruti will set up a separate company with separate infrastructure. Earlier, the company was barred by Insurance Regulatory and Development Authority (IRDA) for two years from selling vehicle insurance policies in the year 2010 for violation of foreign investment norms. The stock was trading in the green.
Energy stocks are trading in the red led by Gas Authority Of India Ltd. (GAIL) and Essar Oil. As per a leading financial daily, Cairn Energy India Pty Ltd. (CEIL), the wholly owned subsidiary of Cairn India Ltd. (CIL) has discovered oil in Nagayalanka-SE-1 well in the onshore block of Krishna-Godavari Basin. The commerciality of the discovery will be determined post further testing and appraisal. CEIL with 24% stake will be the operator of the block. Oil and Natural Gas Corporation Ltd. (ONGC) and CIL hold 25% and 51% stake in the block respectively. This will be second successive discovery well in this block by the Cairn-ONGC joint venture consortium.