Energy stocks have opened the day mainly in the green with Chennai Petroleum Corporation Ltd (CPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) leading the gains. As per a leading financial daily, the Government has slapped an additional penalty of US$579 m on Reliance Industries (RIL) for producing less than targeted natural gas from its KG-D6 block. With this, the total penalty for under production in four fiscal years starting April 2010 stands at US$ 2.4 bn. The penalty is in the form of disallowing costs incurred. As per the Production Sharing Contract (PSC), RIL and its partners BP Plc and Niko Resources are allowed to deduct all capital and operating expenses from the sale of gas before sharing profit with the government. The move will result in government's profit share rising by US$195 m from 2010-11 to 2013-14.
Aluminium stocks have opened the day in the green with Nalco Ltd and Hindalco Ltd leading the gains. The world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia - Hindalco Industries Ltd's stock price has gained momentum on the back of an increase in export duty on bauxite from 10% to 20% in Union Budget 2014-15. A hike in the export duty on bauxite will be favorable for aluminium smelters like Hindalco and Sesa Sterlite who will benefit from the resultant increase in domestic bauxite supply.