The Indian stock markets gained on account of returned buying interest in heavyweights during the last two hours of trade. Stocks from the FMCG, software, oil & gas, and banking sectors are leading the pack of gainers while those from consumer durables and capital goods are trading weak.
The BSE-Sensex is trading up by 100 points while NSE-Nifty is trading 26 points above yesterday's closing. However, the BSE Mid Cap
and BSE Small Cap indices are trading down by 0.6% and 0.5% respectively. The rupee is trading at 52.31 to the US dollar.
Energy stocks have been trading mixed with Indraprastha Gas, Castrol India and Oil and Natural Gas Corporation (ONGC) leading the pack of gainers. However, Bharat Petroleum Corporation Ltd (BPCL), Hindustand Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation Ltd (IOCL) are trading weak. As per a leading financial daily, Reliance Industries (RIL) has closed four wells in its flagship KG-D6 gas fields off the east coast. This has been done because of high water ingress led to output dipping to 41 million standard cubic metres per day (mmscmd). Of the 22 wells planned in Phase-I of D-1 and D-field development, 18 wells have been drilled and completed so far. Of these, while 14 wells are on production, four wells have been closed due to high water cut and sanding issues. As per the Government, the output from KG-D6 is short of the 70.39 mmscmd level envisaged by now as per the field development plan approved in 2006. However, the stock of the company is trading in green.
Telecom stocks have been trading mixed as well with Bharti Airtel, Reliance Communications and Idea Cellular leading the pack of gainers. However, AGC Networks, ADC India Communications and ITI Ltd are trading weak. As per a leading financial daily, the Department of Telecommunications (DoT) is in a dilemma regarding the third-generation (3G) roaming arrangements among Bharti Airtel Ltd, Vodafone Essar Ltd and Idea Cellular Ltd. DoT is of the view that the agreements should be deemed illegal. However, it is looking at legalizing spectrum sharing by January. This would allow a licensed operator in a telecom zone to lease the airwaves to a company that doesn't have spectrum in the same area. As per an official source, DoT is in a predicament how to impose Rs 500 m penalty (deeming the arrangements illegal) and then legalize it the very next month. The heads of three companies have sought the Prime Minister's intervention in the dispute over the 3G roaming pact and have threatened to surrender spectrum if the roaming arrangements are deemed illegal.