After a weak opening, Indian stock markets continued to remain well below the dotted line in the last two trading hours. Barring pharma, all the sectoral indices are trading in the negative. Metal, capital goods and power stocks are the biggest losers.
Most of the mining stocks are trading in the negative with Sesa Goa and National Mineral Development Corporation (NMDC) being the biggest losers. As per a leading financial daily, coal india is likely to enter into fuel supply agreements (FSAs) for a total capacity of 28,000 MW. The number of firms could be as many as 50 including National Thermal Power Corporation (NTPC), Reliance Power and DVC. The proposed move is an outcome of a Presidential directive to the company to supply a minimum assured quantity (at least 80% of the committed coal delivery) of fuel to power producers. As per industry sources, some of the leading power firms that have major capacity addition plans are likely to benefit from the FSAs. Coal India stock is currently down 0.63%.
Majority of the energy stocks are trading negative with Indraprastha Gas Ltd. (IGL) and Essar Oil being the biggest losers. The absence of new gas finds and steep fall in production from KG-D6 fields has led to a huge jump in natural gas imports in India. As per a leading financial daily, Reliance Industries Limited (RIL) is planning to commence marketing of imported natural gas in the country. Its joint venture company, India Gas Solutions, formed with British Petroleum (BP) will be utilized for the purpose. Reportedly, the company is in talks with Shell Hazira and Petronet LNG to utilize their terminals for bringing in liquefied natural gas. RIL faced with a drastic slump in natural gas production from KG-D6 entered into a technical tie-up with BP in February 2011. BP currently owns 30% stake in 23 oil and gas blocks, including KG-D6. The stock is down 1.07%.