Indian equity markets slipped into the red and continue to trade weak over the last two hours of trade. FMCG and auto stocks witnessed maximum buying interest, while IT and metal stocks witnessed maximum selling pressure.
Energy stocks are trading in the red led by Hindustan Petroleum Corporation Ltd (HPCL) and Gas Authority Of India Ltd. (GAIL) India. According to a leading financial daily, Oil and Natural Gas Corporation Ltd. (ONGC) is planning to begin gas sales from Gamij field in Kheda district of Gujarat to the private sector through e-bidding process. The first of its kind initiative taken by the company is likely to benefit existing and upcoming SMEs around this field besides helping the company monetise its small assets. The field is expected to generate an annual turnover of Rs 55 m over the next five years. Gamij becomes the first small marginal field of ONGC to commence gas sale through an e-tendering process, having potential of 15,000 standard cubic metres per day (SCMD) on fall back basis (as and when available) for a period of five year.
Auto stocks are trading on a firm note with Force Motors and Eicher Motors leading the pack of gainers. As per a leading financial daily, Tata Motors is in talks with Brazilian authorities regarding setting up a plant there. We may note here that Brazil is the third largest car market in the world. The proposed plant will assemble Jaguar Land Rover's Freelander four-by-fours. Tata Motors would like to establish a production facility once there is sufficient volume. As per the company, they are talking to the government regarding the same. Jaguar Land Rover was bought out by Tata Motors in 2008 and the luxury brand manufactures most of its cars in England. Expanding overseas helped Tata insulate from the sluggish domestic demand for cars in the last year.