Indian stock markets indices lost further ground in the last two hours of trade on the back of persistent selling across heavyweights. All the sectoral indices are trading in the negative with auto and capital goods stocks leading the pack of losers.
Energy stocks are trading in the negative today led by Essar Oil Ltd and Reliance Industries. As per a leading financial daily, Bharat Petroleum Corporation Ltd. (BPCL) aims to diversify into petrochemicals by building a niche specialty chemical project at Kochi. The project is estimated to cost Rs 50 bn-60 bn and the company plans to rope in a multinational partner for the same. Besides, the company has plans to expand the capacity of Kochi refinery from 9.5 million tonnes per annum (MTPA) to 15 MTPA. The total expenditure for both the projects is estimated at Rs 180 bn to Rs 200 bn over a period of five years. The stock was trading in the red.
As per a leading financial daily, the industrial output, that had been growing since July 2009, has fallen for the first time in October 2011. The Index of Industrial production (IIP) for the month contracted by 5.1%, pulled down by a steep 25.5% slump in the capital goods output. Although the broad indices have been trading in the negative, the capital goods sector was the biggest loser, down 2.6%. As per Larsen and Toubro's management, the slowdown in IIP and GDP growth was expected and the growth in capital goods space could be slow for the next two years. The news has further reinforced the fears of a slowdown in the economy.