Majority of the energy stocks are trading in the red with Essar Oil and Gujarat State Petronet being the biggest losers whereas Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) are a few stocks trading in the green. As per a leading daily, state-run oil marketing companies have cut fuel rates by Rs 2 per litre on the back of falling price of crude. Brent crude fell to a five-year low of $60 a barrel. However depreciating rupee against the dollar has capped the quantum of the price-cut. This is the eight reduction in petrol price in the last four months and fourth cut in diesel prices when it was de-regulated in October 2014.
All the auto stocks are trading negative with Force Motors and Maharashtra Scooters being the biggest losers. As per a leading financial daily, the Expenditure Finance Committee has given approval for the pilot programme of National Electric Mobility Mission Plan (NEMPP) 2020. The plan is likely to be implemented in early FY16. The plan is aimed at providing incentives in the form of capital subsidy to manufacturers of e-vehicles and hybrid vehicles. The government plans to provide subsidies to the tune of Rs 10 bn in the first year of the programme. This plan is likely to benefit companies such as Mahindra & Mahindra that has been betting big on manufacturing electric cars. The company had acquired electric car Reva. The company also has plans of converting existing models such as Verito, Bolero and Scorpio to e-vehicles. Mahindra & Mahindra stock is trading down 2% presently.