Backed by persistent selling across heavy-weights, Indian stock markets shed its gains in the last two trading hours and are now trading near the dotted line. The sectoral indices are trading mixed with FMCG, power and IT stocks being the biggest gainers. Auto, Oil and gas and banking stocks are trading weak.
The steel stocks are trading mixed with Tayo Rolls and Gujarat Mineral Development Corporation (GMDC) being the biggest gainers. As per a leading financial daily, Steel Authority of India Ltd (SAIL) has reduced the price of galvanized corrugated (GC) sheets by Rs 600-3,000 per tonne in June. The downward revision comes on the back of weak demand. Plain sheets are coated with zinc through the galvanizing process and then corrugated in machines to give GC sheets. GC sheets find usage in roofing, industrial sheds, paneling, automobile hoods and household boxes. The GC sheets manufactured by SAIL at its Bokaro Steel Plant are sold under the brand name 'SAIL Jyoti'. The stock of the company was trading in the red.
The energy stocks are trading mixed as well while most of the oil marketing companies such as Hindustan Petroleum Corporation Ltd (HPCL), Oil India Ltd and Indian Oil Corporation being the biggest losers. Petronet LNG Ltd and Gujarat State Petronet are trading strong. As per a leading financial daily, state owned oil companies are planning to further cut the petrol price from 1st July, 2012. The reduction may be as high as Rs 4 per litre. This is being done in the light of softening international oil prices. The crude oil is trading at its level Since December 2010. Also, petrol prices witnessed a massive hike of Rs 7.5 per litre last month with a partial roll back of Rs 2 per litre. Hence, with the reduction of crude oil prices, there created a scope for further price cut. However, with the continuous slide in the rupee, the cost of imports is still under pressure. Hence, with the small upward movement of crude oil or further rupee depreciation may compel the companies again resort to petrol price hike.