Led by selling pressure among the Index heavy weights stocks, the Indian markets slipped in to the negative territory during the previous two trading hours. Selling is led by stocks from energy and engineering sectors, while realty stocks are trading firm.
The BSE-Sensex is trading down by 100 points and the NSE-Nifty is trading down 21 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 0.9% today. The rupee is trading at 59.87 to the US dollar.
Energy stocks are trading mixed today. The stocks of Indraprastha Gas and Chennai Petroleum are leading the gainers, while Reliance Industries is trading weak today. As per a leading business daily, ONGC Videsh (OVL) the overseas arm of state energy major Oil and Natural Gas Corporation Ltd. (ONGC), is planning to raise loans worth Rs 52 bn in order to fund its capital expenditure in FY15. OVL has earmarked the capex of about Rs 148 bn in FY15, out of which Rs 96 bn is expected to be met through internal funds, whereas balance it plans to raise through debt financing. This debt raised will be over and above loans that OVL plans to take to pay off the bridge loan for funding Mozambique assets acquisition. The company has managed to acquire 16% of the gas field giant, Mozambique worth about US$ 4 bn. The acquisition cost has increased the company's previous year capital outlay of Rs 109 bn to Rs 360 bn. ONGC's rich field Mumbai high has been witnessing diminishing resources, so acquiring new fields especially in the overseas will help the company to augment its resources. ONGC is trading down by 1%.
All the public sector bank stocks are trading in the green with Indian Bank and Bank of Baroda being the biggest gainers. As per a leading financial daily, State Bank of India (SBI) has announced plans to set up a holding company for the purpose of raising funds. This development comes after the Finance Ministry asked public sector banks to explore various options such ESOPs, SPV model and holding company model to raise funds from the market for their capital requirements. Under the bank-wise holding company model, the bank will transfer all its subsidiaries to the new company which will then tap the market for funds. While the Reserve Bank of India (RBI) has approved the holding company model, it is still to be approved by SEBI. SBI bank stock is currently trading up marginally