Indian equity markets continued to trade strong over the last two hours of trade on the back of heavy buying activity witnessed across industry heavyweights. Capital goods and IT stocks witnessed maximum buying interest.
Energy stocks are trading in the green led by Essar Oil and Hindustan Petroleum Corporation Ltd (HPCL). According to a leading financial daily, Reliance Industries has cut its estimate of gas reserves in the D6 block by about two-thirds to 3.4 trillion cubic feet (tcf). The D6 block in Krishna Godavari (KG) basin, jointly operated by Reliance and BP Plc, was expected to contribute up to a quarter of the gas supply for India. But output from KG fields has declined, leaving India more dependent on expensive liquefied natural gas (LNG) imports. Reliance's latest revision compares with its December 2006 estimate of 10.3 tcf of reserves and brings the figure back closer to the November 2004 estimate of 3.81 tcf. The company also has revised its capital spending plan from US$ 8.8 bn in 2006 and US$ 2.4 bn in 2004. Reliance has seen its growth outlook marred by falling output from the KG gas fields, and the company has been under pressure from the government and regulators to increase production.
Banking stocks are trading strong led by ICICI Bank and HDFC Bank. According to a leading financial daily, Yes Bank is planning to sell about 500 kilogram of gold products in 2012-13 fiscal. The bank has over 175 branches for bullion business. The private sector bank has introduced combi-bar of 50 gram gold which can be broken into one-one gram unit and can be used for gifting. Yes Bank had launched the bullion business in April, 2012. Its gold products are available in 5, 10, 20 and 50 gram denominations. The bank in association with EZspend Prepaid Payment Solutions has launched a multi-purpose prepaid card to cater to the needs of unbanked/underbanked customers as well as to enhance cashless payment mechanism in the country.