Indian indices continue to languish in the red on profit booking in heavyweights over the last two hours of trade. Stocks from metals and oil & gas space are trading weak while stocks from the realty and power space are trading firm.
The BSE-Sensex is down by 91 points while NSE-Nifty is trading 37 points below the dotted line. BSE-Midcap is trading up by 0.3% while BSE-Smallcap index trading 0.6% above yesterday’s closing. The rupee is trading at 46.05 to the US dollar.
Auto stocks are trading mixed with Tube Investments and Force Motors trading firm while Ashok Leyland and M&M are trading weak. As per a leading financial daily, Jaguar Land Rover (JLR) production may cross 300,000 units in the near future. This is an increase of 25% over current levels and comes on the back of new assembly plants in India and China. The combined production capacity of JLR's existing UK plants is now at 240,000 units. It may be noted that due to supply constraints, Tata Motors has not been able to meet the global demand for JLR. As on date there is a waiting period of 4 to 6 weeks for delivery in all major markets for Jaguar and Land Rover. Tata's Jaguar Land Rover business reported an Rs 17.2 bn net profit for 2QFY11 against a loss of Rs 4.6 bn for the same period last year. The operating margin for the quarter was 16.6 % up by 1.1% over 2QFY10.
Energy stocks are trading mixed with Essar Oil and Chennai Petro trading in the green and Reliance Industries and Gail trading in the red. As per a leading finance daily, the petroleum and natural gas ministry has asked the Planning Commission to constitute a committee to suggest a mechanism to average out prices of imported and domestic gas. This move would make the gas prices uniform for consumers irrespective of the source. As per Petroleum Secretary Mr S Sundareshan, the committee would have representative of GAIL, Petronet LNG, ONGC, Petroleum and Natural Gas Regulatory Board, as well as from petroleum, power, and fertilizer ministries. However, any decision on a mechanism for pooled pricing of gas is likely to come only a year from now. It may be noted that the price for domestic natural gas ranges from US$ 2.71 to US$ 5.73 per million British thermal unit (mBtu), while LNG on long-term contract is currently imported at US$ 6.92 per mBtu and from spot market at close to US$ 8.52 per mBtu.