Energy stocks are trading in the red. GSPL and Gas Authority Of India Ltd. (GAIL) are the biggest gainers, while Gujarat Gas and Mangalore Refinery and Petrochemicals (MRPL) are the biggest losers. According to a leading financial daily, GAIL Limited has signed an agreement with GDF Suez to buy 12 cargoes of liquefied natural gas (LNG) or about 0.8 million tonnes (mt) of the fuel from 2013 to 2014. GAIL and GDF Suez are already working on a 3.5 mt a year floating LNG import terminal, which the Indian company plans to set up off the east coast. The French firm would have a 26% stake in the project. GAIL has been expanding its global presence to secure gas supplies. It had earlier signed a 20-year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners USA, for supply of 3.5 mt per year of LNG beginning in 2017.
Mining stocks are mostly trading weak led by Jain Irrigation and Kalpataru Power. According to a leading daily, Larsen and Toubro (L&T) has decided to sell its plastic machinery business, L&T Plastic Machinery Limited to Japan's Toshiba Machine Co. Ltd. The plastic machine business manufactures and markets injection moulding machines. It had revenues of Rs 2 bn of the overall consolidated sales of Rs 643 bn. This implies that it has a negligible contribution to L&T overall business. We may recollect here that L&T is in a phase to realign its businesses with a greater focus on the core business. Meanwhile, L&T has set 15-20% order growth as a target for 2012-13 which seems challenging.