Indian stock market indices continued to fall over the last two hours of trade on back of heavy selling activity witnessed across index heavyweights. Capital goods and Power stocks witnessed maximum selling pressure.
Power stocks are trading in the red led by Neyveli Lignite and PTC India Limited. As per a leading financial daily, Power Grid Corporation of India (PGCIL)'s Board of Directors has approved two investment proposals. The first one is to strengthen the transmission system in the western part of WR for IPP (Independent Power Producers) generation projects in Chhattisgarh. This is at an estimated cost of Rs 21.3 bn, with commissioning schedule of 32 months progressively from the date of investment approval. The second proposal is for 'Northern Region System Strengthening Scheme - XXIV' at an estimated cost of Rs 7.2 bn, with commissioning schedule of 3 years from the date of investment approval. The company wheels around 45% of total power generated across India. The stock was trading in the red.
Energy stocks are trading in the red led by Essar Oil and Gas Authority of India (GAIL India Limited). As per a leading financial daily, GDF SUEZ and Petronet LNG Limited have signed an agreement extending along 2012 under which GDF SUEZ will sell Petronet about 0.6 million tons (9 cargoes) of liquefied natural gas (LNG). The cargoes will be sourced from within GDF SUEZ LNG portfolio and will be delivered to Petronet's Dahej LNG terminal in India. As per the company's management, the short term deal will help the company minimize the gas shortage as the country faces decline in domestic gas supplies. GDF SUEZ has also been a strategic partner of Petronet since 1997. The stock was trading in the red.