Indian stock market indices continued to trade weak over the last two hours of trade on the back of heavy selling activity witnessed across index heavyweights. Banking and Metal stocks witnessed maximum selling pressure, while Auto and FMCG stocks witnessed maximum buying interest.
Cement stocks are trading mixed with Ultra Tech Cement and Shree Cement trading the strongest and JK Laxmi Cements and India Cements leading the pack of losers. Shree Cement has reported results for the quarter ended September 30, 2011 (2QFY12). The growth in the company's bottomline zoomed to 266% on a year on year basis (YoY). The company's total income was up 15.3% YoY. Segmentwise, the cement business contributed Rs 8.5 bn to the company's topline and the power segment contributed Rs 800 m. Meanwhile, the consumption of raw material and power and fuel costs stood at Rs 900 m and Rs 2 bn, respectively, during the reporting quarters.
Oil stocks are trading in the red led by BPCL and Essar Oil. As per a leading financial daily, ONGC is in discussion with Rashtriya Ispat Nigam (RINL) and Bharat Heavy Electricals (BHEL) for a joint venture manufacturing plant at Vizag worth Rs 20 bn. The proposed joint venture agreement is likely to be signed before the end of the current year and once that is done it will go for tendering for the plant and machinery. The plant is expected to become operational in two to two-and-a-half years from the start of tendering. RINL will hold the majority stake in the JV as the proposed facility will be housed inside RINL's Vizag facility. The mill will have 400,000 tonne per annum seamless tube installed production capacity. The stock was trading in the green.