Energy stocks are trading in the red led by Hindustan Petroleum Corporation Ltd (HPCL) and Cairn India. According to a leading financial daily, Oil and Natural Gas Corporation Ltd. (ONGC) is planning to sell 26% stake in its KG Basin exploration block, KG-DWN-2004/6, to Japanese oil and gas explorer Inpex Corporation. ONGC will continue as the operator of the deepwater block, with a 34% participating interest in consortium with existing partners GAIL (India) Limited (10%), Gujarat State Petroleum Corporation Limited (10%), Hindustan Petroleum Corporation Limited (10%) and Oil India Limited (10%). The block, awarded to an ONGC-led consortium under the NELP-VI licensing round, is located about 300 km off the Andhra Pradesh coast and covers an area of 10,000 sq km, with a water depth of approximately 3,000 metres. ONGC has completed most of the phase-I exploration programme in the block except drilling of one well. The deal still needs the approval of the Government of India.
Steel stocks are trading in the green led by Jindal Steel and JSW Ispat. According to a leading financial daily, Tata Steel will increase its production by 3 m tonnes by 2013-14. The steel company will make an addition to existing capacity of Jamshedpur plant making it 10 m tonnes. The existing capacity of 7 m tonnes comprises of 3 m tonnes of long and 4 m tonnes of flat products. The company intends to increase the capacity of flat products while maintaining the same level for long production. In the meanwhile, Tata Steel has introduced a new product range of HR coils, Tata Astrum and expects to earn revenues of Rs 40 bn this year from it.