After trading on a bearish note during the morning session Indian Indices further moved southwards and are currently trading deep in the red. Sectoral indices are trading on a negative note with stocks from the energy, steel and mining sectors leading the losses.
The BSE-Sensex is trading down by 1121 (down 4.1%) and the NSE-Nifty is trading down by 344 points (down 4.2%). The BSE Mid Cap index is trading down by 5% and the BSE Small Cap index is trading down by 6%. Gold prices, per 10 grams, are trading at Rs 27,383 levels. Silver price, per kilogram, is trading at Rs 36,000 levels. Crude oil is trading at Rs 2,639 per barrel. The rupee is trading at 66.56 to the US dollar.
Mining stocks are trading on a negative note with Vedanta Ltd and Hindustan Zinc leading losers. As per a leading financial daily, Coal India has cleared three projects with at total production of 40 million tonnes entailing an investment of about Rs 59 bn. The said mines are expected to commence production within a few years and will add to the company's target of achieving 1 billion tonnes in output by 2020. Further, the company is planning to spend a total Rs 106 bn in FY16 on enhancing its production capacity and ramping up infrastructure. Coal India is the world's largest coal mining company. It also produces non-coking coal and coking coal of various grades for diverse applications. The stock of company is currently trading down by 2.3%.
Energy stocks are also trading negatively with ONGC and Cairn India witnessing maximum selling pressure. As per an article in Economic Times, GAIL India Ltd has begun talks with Iran to revive a decade-old US$ 22 bn LNG supply contract. This is said to be the cheapest such deal ever struck by an Indian firm. Under the contract, the company is to buy 2 million tonnes per annum (mtpa) of LNG from NIGEC (National Iranian Gas Export Company). Presently the scrip of company is trading down by 7.5%.