is trading up by 200 points while NSE-Nifty
is trading 61 points above yesterday's closing. The BSE Mid Cap and BSE Small Cap indices are trading up by 0.1% and 0.2% respectively. The rupee is trading at 47.73 to the US dollar.
Energy stocks have been trading mixed as well with Essar Oil, Mangalore Refinery and Petrochemicals (MRPL), and Gas Authority of India Limited (GAIL) leading the pack of gainers. However, Gujarat State Petronet, Indraprastha Gas and Petronet LNG are trading weak. As per a leading financial daily, an empowered group of ministers (EGoM) chaired by finance minister Pranab Mukherjee will examine the proposal to limit the number of subsidised LPG cylinders to 4-6 per households a year . The aim is to prevent the diversion of domestic fuel for commercial use and abuse of the subsidy. As of now, the state run oil marketing companies sell domestic cooking fuel at Rs 399 per 14.2 kg cylinder in Delhi. This is below the market price by Rs 270. The under recoveries so incurred are shared by upstream companies like Oil and Natural Gas Corporation Ltd. (ONGC)
and the Government. The heavy subsidy makes it lucrative to divert the use of domestic LPG cylinder for commercial use. The capping of number of subsidized LPG cylinders will fall under first phase of fuel pricing reforms. In the second phase, subsidy will be offered only to the eligible class of consumers as identified by the respective state governments.