Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Capital goods stocks weigh on markets
Wed, 16 Nov 01:30 pm

The Indian stock market continued to trade weak on account of selling pressure in heavyweights during the last two hours of trade. Except for FMCG, all sectoral indices are trading in the red. Stocks from the capital goods, power, oil & gas and realty are leading the pack of losers.

The BSE-Sensex is trading down by 142 points while NSE-Nifty is trading 50 points below yesterday's closing. The BSE Mid Cap and BSE Small Cap indices are trading down by 1.5% and 1.9% respectively. The rupee is trading at 50.86 to the US dollar.

Steel stocks have been trading mixed with Adhunik Metaliks, Jindal Steel and Jindal Saw Ltd leading the pack of gainers. However, Steel Authority of India Ltd (SAIL), Metals and Minerals Trading Corporation (MMTC Ltd), Tayo Rolls are trading weak. As per a leading financial daily, SAIL's expansion project worth Rs 170 bn in West Bengal has come to a halt on account of strong opposition from villagers on any construction on the small land. The reasons cited were environmental and religious. The company has already spent Rs 119 bn to expand the IISCO Steel Plant's (ISP) capacity from 0.4 million tonnes to 2.5 million tonnes per annum. Despite a high compensation already offered, the villagers are not ready to vacate the land. They are now demanding permanent jobs in the company which is not possible as there is no provision for this in the plant. The management has approached the state government for a solution.

Energy stocks have been trading mixed as well with Mangalore Refinery and Petrochemicals Ltd (MRPL), Oil and Natural Gas Ltd (ONGC) leading the pack of gainers. However, Hindustan Petroleum Corporation Ltd (HPCL), Gas Authority of India Ltd (GAIL) and Bharat Petroleum Corporation Ltd (BPCL) are trading weak. As per a leading financial daily, GAIL India has emerged as the lowest bidder for Surat-Paradip pipeline due to aggressive bidding. As per some institutional sales sources, it has bid a surprisingly low pipeline tariff of 0.01 rupees per million British thermal unit to bag the project. This is a matter of concern for investors as it can impact return ratios adversely. The company had recently won rights to lay a 1,550-km natural gas pipeline from Surat in Gujarat to Paradip in Orissa, connecting west to east coast, beating Gujarat State Petronet Ltd (GSPL).

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Capital goods stocks weigh on markets". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.