As weakness persisted in index heavyweights, Indian share markets continued to trade below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading in the red with FMCG, auto and oil and gas stocks being the biggest losers. However, consumer durables, pharma and banking stocks are trading in the green.
Energy stocks are trading mixed with Jindal Drill and Petronet LNG being the major gainers and Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) being the biggest losers. As per a leading financial daily, Reserve Bank of India (RBI) has issued orders to state-owned oil companies namely Indian Oil Corporation, HPCL, BPCL and Mangalore Refineries to purchase their daily dollar requirements from a single public sector bank. The move is aimed to curb volatility in exchange rate in the light of steep depreciation in the rupee against the US dollar. Reportedly, the state oil refineries, who are the biggest buyers of US dollars, have agreed to implement the RBI order with immediate effect.
Automobile stocks are trading mixed with Tube Investments and TVS Motors being the leading gainers while Mahindra Scooters and Tata Motors are the biggest losers. As per a financial daily, the Supreme Court has asked Tata Motors, to make its stand clear on the leasehold rights over the Singur land at West Bengal. The said land was acquired by the company for manufacturing Nano cars. However, due to various political issues raised on the said project, the Tatas moved the Nano project to Sanand in Gujarat. With the land at Singur, remaining unutilized, the Supreme Court wants Tatas to return the land to the farmers. Reportedly, the court has asked Tata's counsel to get back to the court with an answer on returning the land back to farmers by 6th August 2013. Tatas had taken this land on 90 years lease and claim to have paid around 90% of compensation to farmers. Tata Motors' stock was trading down by 1.3%.