Commodity prices remained volatile. While gold price per 10 grams has increased marginally by Rs 8 and is trading at Rs 25,966 level; Silver price has fallen by Rs 50 per kilogram or 1% and is currently trading at Rs 36,320. Crude oil price has gained by 0.5% and per barrel is currently trading up by Rs 9 or 0.3% at Rs 2,871. The value of Indian rupee, too, has not shown any major movement and is trading with slight gains of 0.02% at Rs 62.53.
Asian stocks finished today's trading session on a mixed note. Japanese, Chinese and Taiwan stocks finished in the green with gains of 0.4%, 1% and 0.1%, respectively while Hong Kong and Korean stocks finished in the red with losses of 0.2% and 0.03%, respectively.
Most of the energy stocks are trading in the red with Gujarat Gas and GAIL being the biggest losers. As per a leading financial daily, Cairn India is feeling the heat of a slump in crude oil prices. Due to the slide in prices, the company has cut its capex by 60% to $500 m as compared to $1.2 bn earlier. The company has also laid off 250 employees and is re-negotiating drilling contracts to curtail costs. To add to this, the company has also been slapped with a tax demand of Rs 204.9 bn for not deducting withholding tax on capital gains made by its former parent, Cairn UK Holdings. The company is also awaiting the extension of the production sharing contract of its Rajasthan field. Cairn India stock is presently trading up by 1.3%.
Sugar stocks are trading low with major companies such as Shree Renukar Sugar and Bajaj Hindustan reporting a fall in the range of 3% to 5%. Sugar prices fell down by 3.4% to a five year low of Rs 2,400 per quintal resulting in a slide in sugar stocks. Additionally, weaker demand and ample supply of sugar stocks in warehouses also proved to be a dampener. The share price of Balarampur Chini Mills has fallen by nearly 3.5%.