Indian equity markets continued to trade strong over the last two hours of trade on back of heavy buying activity witnessed across industry heavyweights. Auto and Realty stocks witnessed maximum buying interest while Power and Pharma stocks witnessed maximum selling pressure.
Energy stocks are trading in the green led by Gujarat State Petronet Ltd (GSPL) and Petronet LNG. According to a leading financial daily, Petroleum and Natural Gas Regulatory Board (PNGRB) has slashed the rate charged by Gujarat State Petronet Limited (GSPL) by about 40%. This is for the company's 2,239-km Gujarat Gas Grid. The regulator has said that the company was charging discriminatory rate from different customers. Against Rs 39.6 per million British thermal unit (mmBtu) rate submitted by GSPL, the PNGRB has fixed the rate at Rs 23.9 per mmBtu. The regulator has also said that the approved rate would be effective November 20, 2008 and the difference between the tariff charged and that approved by the board shall be adjusted with customers in future billings.
Software stocks are trading strong led by Wipro and Tech Mahindra. According to a leading financial daily, Wipro is planning to sell its water purification and treatment business to New Delhi-based Earth Water Group (EWG). The deal size is likely to be between Rs 450 to 500 m. The water business is part of Wipro Infrastructure Engineering, which is also the largest independent hydraulic cylinder manufacturer in the world with 10 manufacturing set ups. The potential sale was part of a bigger restructuring exercise to exit the smaller pieces in its diversified portfolio, which the company has been finding it difficult to scale up. The other businesses identified as non-core include the baby care and vanaspati oil brands. Close to 85% of Wipro's revenues come from IT, while consumer durables and lighting form the lion's share of the residual non-IT revenues.