Indian stock markets continued to trade in the positive territory on the back of strong buying in mid cap and small cap stocks. All major sectoral indices, barring IT, are trading in the green with capital goods leading the front.
Energy stocks are trading mixed with Essar Oil and Indraprastha Gas topping the list of gainers. As per a leading financial daily, the Government of India may change its priority list to sell domestic gas (KG-D6) gas. The government may restrict supplies to fertilizer units and divert them to retail users. It has also accepted the suggestion of Comptroller and Auditor General (CAG) to strictly monitor its usage. To ensure efficient utilization of the limited domestic gas supplies as subsidized prices (US$ 4.2 per unit), the Government will ask sectoral ministries to certify that usage is well within the specified limits and there is no diversion of gas. The oil ministry officials have said that for fresh supplies, city gas distribution (CGD) networks should be given priority over fertilizer and power sectors that currently top the priority list in Government's Gas Utilization Policy. The decision on the new priority list is expected in next meeting of Empowered Group of Ministers on gas pricing and utilization.
Engineering stocks are mostly trading in the positive with Finolex Cables, ABB and Everest Kanto leading the gains. Blue Star has bagged order worth Rs 840 m from Bangalore Metro. The order encompasses building environmental control system and management system for the Metro's seven underground stations. The work for the phase-1 of the Bangalore Metro includes design, supply, installation, testing and commissioning of chillers, pumps, air handling units, fan coil units, cooling towers, ventilation fans, motor control centre panels. Blue Star's net sales declined 13.0% YoY during 2QFY12. Decline in revenues from the Electro-Mech. Proj. & Packaged A/C Sys. (EMPS) and Professional Electronics & Industrial Systems (PEIS) business segments had impacted the overall performance. The stock was up by 1.2%.