Mining stocks are trading in the red led by National Mineral Development Corporation (NMDC) and Sesa Goa. According to a leading financial daily, the government which is in the process of setting up a coal regulator for the sector is planning to empower it with pricing powers. The proposal, if implemented, would deprive state-owned Coal India Limited the freedom it currently enjoys in fixing and revising prices of its output. Apart from regulating prices, the regulator's function would include specifying the quality and performance parameters, ensuring adherence to the mining plan, recovering penalties, monitoring the utilisation of funds for coal conservation and promoting clean coal technologies. The Coal Regulatory Authority would comprise a chairperson and four members, one each for the legal, technical, finance and administration wings. The chairperson and the members would be appointed by a selection committee headed by the cabinet secretary.
Energy stocks are trading weak led by Reliance Industries and Petronet LNG. According to a leading financial daily, Reliance Industries has cut estimates for its KG-D6 block as the decline in production was higher than anticipated. The company has reduced estimates for proven gas reserves from its Indian blocks by 6.7% to 3.67 trillion cubic feet. The proved reserves were also reduced due to sale of participating interest to BP. However the company believes that its joint venture with BP could reverse the decline, though timely regulatory approvals were needed for this.