Indian stock market indices are trading flat over the last two hours of trade. FMCG and Auto stocks witnessed maximum buying interest, while Oil and Gas and IT stocks witnessed maximum selling pressure.
Energy stocks are trading in the red led by Indraprastha Gas Ltd (IGL) and Gujarat State Petronet Limited. According to a leading financial daily, Indraprastha Gas Ltd (IGL), who is the sole supplier of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi may suffer a loss of Rs 10 bn. This is after the Petroleum and Natural Gas Regulatory Board (PNGRB) ordered cut in rates and charges for CNG and PNG to Delhi consumers. The prices of CNG could come down by 20% while the prices of PNG could come down by 10%. The gas board has directed IGL to reduce prices after factoring in the reduction in both network rates (levied on CNG, PNG and industrial consumers) and the compression charges on CNG. It has also asked the company to make refunds since the 2008-09 financial year based on these changes, since that was the first financial year of operation for the company after the regulator came into being in October 2007. The company may decide to challenge the gas board's order.
Telecom stocks are trading in the green led by Tata Communication and Idea Cellular. According to a leading financial daily, Bharti Airtel is soon going to launch fourth generation (4G) services in India. This will make Airtel the first Indian company to deploy a commercial high-speed wireless broadband service in the country. Initially, the 4 G services will be launched in the four circles of Maharashtra, Karnataka, Punjab and Kolkata. This will be followed by launching of broadband wireless access (BWA) in three other circles soon. It may be noted here that Airtel had paid Rs 33.1 bn for 4 G services. Reliance Industries too is planning to launch BWA services in some circles in the near term.