Indian equity markets continued to trade below the dotted line during the post noon trading session. All the sectoral indices are trading in negative territory with banking and oil and gas stocks leading the pack of losers.
BSE-Sensex is down by 393 points and NSE-Nifty is trading down by 126 points. At the same time while BSE Mid Cap is trading down by 0.85%, BSE Small Cap index is trading down by 0.37%.The rupee is trading at 67.32 to the US dollar.
Majority of the mining stocks are trading in the red with Gujarat NRE Coke and NMDC being the biggest losers. As per a leading financial daily, Coal India has announced that its subsidiary Central Mine Planning & Design Institute is planning to auction two coal blocks for underground coal gasification. The blocks that are being offered are in the Central Coalfields and Western Coalfields and have substantial reserves that can be economically exploited for underground coal gasification. This technique is an alternative method applied to resources where it is unprofitable or technically complicated to extract coal by traditional mining methods. Under this method, oxidants are injected into the coal seams and the product gas is brought to the surface through production wells. The gas so produced can be used as a fuel for power generation. The mining major has been grappling with production shortfall. Reportedly, the company has chalked investments of Rs 50 bn to raise coal production. Coal India produced 452 m tonnes of coal in FY13 and plans to raise capacity by 30-35 m tonnes per annum. The company's stock is currently trading up by 1.7%.
Most of the Indian pharma stocks are trading in the red with Piramal enterprises and Sun pharmaceuticals leading the pack of losers. As per the financial daily, drug regulator, viz drug controller general of India (DCGI) has asked Wockhardt to explain the reasons for the issues in Aurangabad facility. The said notice, seeks reply within a month's time from the company. This was due to import alert the company received from the US drug regulators few months back. Reportedly as per officials, after DCGI gets reply from the company, the regulator will review whether the company has satisfactorily resolved the issues and will take the steps accordingly. The regulator may follow up the matter with one more on-site evaluation to check whether what is being promised on paper is being delivered in practice or not. Wockhardt was trading up 0.7% at the time of writing.