Backed by persistent buying in industry heavyweights, Indian share markets continued to trade at elevated levels in the last two trading hours. All the sectoral indices are trading in green with metal, banking and power stocks leading the gains.
Energy stocks are trading strong led by Gujarat State Petronet and Essar Oil. According to a leading financial daily, Reliance Industries and its British partner BP plc have revised downwards the investment required for developing the MA oilfield in the predominantly gas-rich KG-D6 block by US$ 276 m to US$ 1.96 bn. This is because the field has not performed as predicted since it started production in September 2008 and is producing less than half of the estimated peak output of 20,000 barrels of oil per day due to water and sand ingress in wells. Reliance had to shut one out of the six wells on the field because of high water production. Natural gas output from the field has also come down from 8 million standard cubic meters per day (mmscmd) to about 6 mmscmd now. MA field contributes about a fifth of current day production of a little less than 30 mmscmd at KG-D6 block. Reliance stock is up 1.9%.
Most of the finance stocks are trading in green with Indiabulls Financial Services and Rural Electrification Corporation being the biggest gainers. As per a leading financial daily, Shriram Transport Finance Company expects rural India to be the next growth driver for the company. Currently, the company's loan disbursements to rural regions form around 2% of the total offtake. The company plans to increase rural share to 5% over the next five years. Improved connectivity due to development of roads and widening reach of Internet is boosting demand for commercial vehicles in rural India. According to the company, people in villages are increasingly going for their own second-hand commercial vehicles, especially the one-tonne special carriers to transport their produce to cities. The stock is down 0.5%.