Indian stock market indices have managed to erase early losses and are trading strong over the last two hours of trade. IT and power stocks witnessed maximum buying interest while Oil and gas and capital goods stocks witnessed maximum selling pressure.
Energy stocks are trading in the red led by Reliance Industries Limited (RIL) and Oil India. According to a leading financial daily, Reliance Industries proposal to invest in survey of all discoveries made in KG-D6 gas block has been rejected by the government. Instead, they have been directed by the government to restrict pre-development expenses only to fields that have been proved to be commercially viable. RIL and its British partner BP Plc had proposed undertaking concept validation and Front End Engineering Design (FEED) for all the 16 gas discoveries surrounding the currently producing Dhirubhai-1 and 3 fields in the KG-D6 block. In all, 18 gas and one oil discovery has been made in the KG-D6 block in Bay of Bengal. Of these two gas finds, D1 and D3, and one oil, D-26, have been put on production.
Automobile stocks are trading weak led by Exide Industries and Ashok Leyland. According to a leading financial daily, workers at Maruti Suzuki India's Manesar plant have demanded a five time increase in their basic salaries. The newly formed body, Maruti Suzuki Worker's Union, has submitted a list of about 20 demands to the management for consideration while finalising the three-year wage settlement agreement. The workers have also asked for linking of dearness allowance (DA) to basic pay instead of a fixed amount being given currently. Among other demands, it is understood that the workers have also asked for increasing the number of privilege and casual leaves, offer conveyance services within 100 km distance from the plant and help the employees in getting affordable accommodation.