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.
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).