The benchmark indices in the Indian stock market traded flat in the last two hours of trade. Stocks from Consumer Durables and Software space are trading firm, while those from Oil & Gas and Realty are trading weak.
Energy stocks are trading mixed with MRPL, GAIL and ONGC leading the pack of gainers. The stocks of Reliance Industries and Petronet LNG are trading in the red. As per a leading financial daily, GAIL is in talks with US based Chevron to acquire stakes in its deepwater natural gas blocks in Indonesia. As per the company sources, the preliminary discussions have already been held. The company expects Chevron officials and upstream regulator for Indonesia (BPMIGAS) to come to the country soon for further talks. As of now, there are no details on amount of stake. If the deal goes through, it will help GAIL to access LNG for India and will act as a natural hedge for its business. GAIL has expressed intention to take 30 m tonnes per annum of LNG from Chevron's deepwater projects in Indonesia over a period of 13 years (2014-2026). The combined gas reserves in these fields are estimated to be more than 3 trillion cubic feet.
Engineering stocks are trading mixed as well with Bharat Bijlee, Shanthi Gears and Elgi Equipments leading the pack of gainers. However, Suzlon Energy and Alstom Projects are trading weak. As per a reputed news website, BHEL has said that its consortium with Alstom has successfully bagged a contract for steam turbine generators. The order is worth Rs 16 bn and has been placed by Nuclear Power Corporation of India for its 2x700 MW Kakrapur Nuclear Power Station in Gujarat. This being the first ever order for Steam Turbine Generators for new rating 700 MW nuclear sets pressurised heavy water reactors is a major breakthrough for BHEL.
In a separate development, the Ceramic Business Unit (CBU) of BHEL is also setting up a plant to manufacture glass insulators for transmission lines with an aim to increase the plant capacity. The management plans to increase the capacity of Jagdeeshpur plant in U.P from 1 lakh units per annum to 1.8 m units per annum with an investment of Rs 1 bn. The stock of BHEL is trading in the green currently.