Indian equity markets continued to trade in the red over last two hours of trade on account of selling witnessed all across sectors. All sectoral indices are trading weak led by auto and energy stocks.
The BSE-Sensex is trading lower by 192 points and NSE-Nifty is trading down by 65 points. BSE Mid cap and BSE Small cap indices are trading lower by 0.6% and 0.7% respectively. The rupee is trading at 56.47 to the US dollar.
Energy stocks are trading weak led by Reliance Industries and Petronet LNG. As per a leading financial daily, Oil and Natural Gas Corporation (ONGC) is planning to focus on shale and deep water areas to increase its production and improve profitability by 2030. The oil and gas company feels that doing this might result in doubling its production and also tripling its profit. We may note here that ONGC faces stiff competition from its Chinese counterparts to acquire assets globally. In fact, it has been beaten by these rivals to acquire assets from Latin America to Africa. The oil major also feels the need to form alliances to explore more opportunities.
Aluminium stocks are trading in the green led by Hindustan Aluminium Company Limited (Hindalco) and National Aluminium Company Limited (Nalco). As per a leading daily, an empowered group of ministers (EGoM) has granted permission to Reliance Power and Essar, Hindalco to start mining at 2 coal blocks allotted to them. Reliance Power can now start mining from the Chhatrasal block and Essar-Hindalco from Mahan block. Although permissions have been granted, these come with around 15 riders. One of them states that the companies will have to spend 5% of their project cost in fulfilling corporate social responsibilities. Also, efforts will have to be made on the companies' behalf in restoring any damage caused to forest area and wildlife.