Energy stocks are trading weak led by Petronet LNG and Gas Authority of India Limited (GAIL) India. According to a leading financial daily, Reliance Industries has moved the Supreme Court seeking the appointment of an arbitrator in its dispute with the government over the D6 block in the Krishna-Godavari (KG) basin. In a pre-emptive move, Reliance had sent an arbitration notice to the petroleum ministry in November 2011 over the issue of recovery of cost in the production of natural gas from the block. The company did not withdraw the notice even after the petroleum ministry said it had not decided anything on the issue and, therefore, there was no question of a dispute. However the company has maintained that although there was no actual move from the government to restrict the cost-recovery, the delays in granting permits and approvals on various key issues related to the block show there is a move to restrict cost recovery.
Aluminium stocks are trading mixed with Hindalco trading in the red and National Aluminium Corperation Limited (Nalco) trading in the green. According to a leading financial daily, the flagship company of Aditya Birla Group, Hindalco Industries is planning to raise Rs 30 bn. The company will issue 10 year bonds at 9.55%. The company has appointed Standard Chartered Bank and HDFC Bank as arrangers to the deal. The company is acting quickly on the back of the Reserve Bank of India (RBI's) larger than expected 50 basis point rate cut. The company will use the proceeds to fund its ongoing expansion plans.