Indian share markets widened losses in the post-noon trading session. Majority of the sectoral indices are trading in the red with oil and gas and realty stocks being the biggest losers. Capital goods and consumer durable stocks are trading positive.
Majority of the energy stocks are trading in the red led by Oil and Natural Gas Corporation Ltd. (ONGC) and Oil India. Essar Oil and Chennai Petroleum are among the few stocks trading in the green. As per a leading financial daily, the Cabinet Committee of Economic Affairs (CCEA) has postponed hike in domestic gas price by three months. As per the petroleum Minister all stakeholders will be consulted and people's interests will be kept in mind before a decision on gas price hike is arrived at. Under the new gas pricing guidelines, the price of gas was raised from $4.2 m British thermal units (mBtu) to $8.8 mBtu. Although the gas pricing guidelines were notified on 10th January 2014, its implementation had to be deferred due to the model code of conduct for the general elections.
Auto stocks are trading mixed. While Eicher Motors is trading firm, Maruti and Tata Motors are trading weak. As per leading business daily, leading automobiles manufacturers have shutdown their factories in the month of June as part of their regular machine maintenance procedure and inventory maintenance. The move is incidental to sluggish conditions in the domestic car market. The sales of many companies like Tata Motors, Toyota, Mahindra & Mahindra, Volkswagen have nosedived in FY14, resulting in the overall decline in industry's sales by 6% YoY during the financial year.
Maruti Suzuki, having capacity of 1.5 m cars per annum, has shut its six plants across Gurgaon and Manesar for 8 days which is stated as a bi-annual closure to adjust the inventories due to weak market condition. Tata Motors has also shut all its commercial vehicle plants in Jamshedpur and Lucknow due to inventory pile up and maintenance. The company has also shut down temporarily, its Nano production factory at Sanand, Gujarat In a big relief to the automobile industry, the government has extended the excise duty concessions for manufacturers until December 2014.