Indian share markets continued to slip deeper into red in the post-noon trading session after RBI chose to keep rates unchanged. Barring auto, consumer durables and pharma, all the sectoral indices are trading in the red with power and capital goods stocks being the biggest losers.
Energy stocks are trading mixed with Gujarat Gas and Oil & Natural Gas Corporation (ONGC) being the major gainers whereas Petronet LNG and Indian Oil Corporation (IOC) are trading in the red. As per a leading financial daily, Petronet LNG would be leasing out its 5 million tonne per annum terminal at Kochi as storage facility for international LNG players. In this regard, the company has received board approval. Kochi terminal's capacity utilization remained a measly 1.4% in the absence of pipeline connectivity. Petronet LNG is likely to lease out the terminal by the third quarter of FY15. According to the company, weak demand in the international gas market has resulted in lower spot prices and therefore international companies want to capitalize on arbitrage opportunities by storing gas now and selling it later when market conditions improve. The company has received interest by more than a dozen companies for utilization of the Kochi facility. In the quarter ended June 2014, Petronet LNG posted a 30% fall in earnings as a result of the dual impact of poor margins from LNG imported at the Dahej terminal coupled with higher depreciation and interest outgo for its Kochi terminal. The company's stock is currently trading down by 4.2%.
Food & tobacco stocks are trading on a mixed note. While Wadala Commodities is trading higher, Golden Tobacco and ITC are leading the pack of losers. As per a leading business daily, diversified major ITC has hiked price of its select cigarettes brands by up to Rs 10 per pack of 10 cigarettes. The price has been increased for brands like Classic and Gold Flakes and the new stocks are likely to hit the market soon. Price for these brands has been revised from Rs 85 to Rs 95 per pack. Even prices for other brands have been raised. The prices have been raised to pass-on the excise duty on cigarettes that were increased in the range of 11% to 72% in the 2014 Union Budget.