Indian equity markets continue to trade weak over the last two hours of trade. IT and FMCG stocks witnessed maximum buying interest while Capital Goods and Realty stocks witnessed maximum selling pressure.
Steel stocks are trading in the red led by Tata Steel and Tayo Rolls. According to a leading financial daily, Tata Steel has received a letter of intent from Eiffage Rail for the supply of high-quality rail for a new 182-km high-speed line in France. Tata will supply 50,000 tonnes of rail for the new Brittany-Loire Valley line, which will connect the cities of Le Mans and Rennes. The steel will be manufactured in the UK before being rolled into rail at Tata Steel's mill in France for delivery from 2015. The order value is likely to be Rs 3.15 bn. The project is expected to create 10,000 jobs during the construction phase and will be completed in 2016. In July, Tata Steel announced an investment in new technology at its Hayange rail mill to produce longer wear- resistant rails. And last year the company completed an upgrade of the facility, enabling it to produce 108-metre long rails.
Engineering stocks are trading weak led by Suzlon Energy and Bharat Heavy Electricals Limited (BHEL). According to a leading financial daily, Larsen & Toubro (L&T) is a bidder for building Saudi Aramco's multi-billion-dollar refiners. The list includes other 19 bidders of which most are South Korean firms. The proposed refinery in Jizan is a part of the kingdom's plans to boost its oil refining capacity. Jizan is an underdeveloped province bordering Saudi Arabia's southern neighbour Yemen. The refinery will be operational from 2016. Aramco will award the engineering, procurement and construction (EPC) business to engineering companies in the first quarter of 2013. This refinery along with 2 others which are under construction will overall raise Aramco's domestic refining output to 3.5 million barrels per day.