The key indices in Indian stock markets shed most of the early gains over the last two hours of trade. IT and Energy stocks witnessed maximum buying interest while Realty and Metal stocks witnessed maximum selling pressure.
Oil and Gas stocks are trading in the green. Essar Oil and Reliance Industries Ltd. are the biggest gainers while Gujarat State Petronet Ltd. and Indraprastha Gas are the biggest losers. As per a leading financial daily, Gas Authority of India Ltd. (GAIL) is planning to set up an RLNG (re-gasified liquefied natural gas) terminal with a capacity of 2.5 mtpa (million tonne per annum)or 10 mmscmd (million standard cubic metre per day) to counter the shortage of natural gas faced by industries in Andhra Pradesh. The venture will be in association with other companies. It will be spearheaded by AP Gas Infrastructure Corporation (APGIC). The project is expected to cost anywhere between Rs 5 bn and Rs 10 bn depending on the technology that would be adopted for the project. As per the Government officials, the coastal town of Kakinada is one of the options for locating the project. The stock was trading in the red.
Engineering stocks are trading mixed. Bharat Earth Movers Ltd. and Shanthi Gears are the biggest gainers while TRF Ltd. and Carborundum Universal Ltd. are the biggest losers. As per a leading financial daily, Bharat Heavy Electricals Ltd (BHEL) is planning to develop power projects in Uganda and Nigeria. The plan is a part of strategy to broaden India's economic engagement with African countries to secure access to oil and gas blocks. The company has separately entered into partnerships with private sector companies for developing the 700 megawatts (MW) Karuma hydropower project in Uganda. The project is worth US$ 1.5 billion. The Karuma project is being developed by Uganda's ministry of energy, with the concerned private firms being separately short-listed for placing bids for the contract.
BHEL plans to supply the electromechanical package for the project, which is valued at around Rs 15 bn. Besides, it plans to develop Nigeria's first coal power project for the state-owned Power Holding Co. of Nigeria. Bhel is preparing a feasibility report for the 1,000MW project, which will require an investment of around US$1.2 bn. The stock is trading in the red.