Indian stock market indices traded weak over the last two hours of trade on the back of heavy selling activity witnessed across industry heavyweights. Oil and Gas and Metal stocks witnessed maximum selling pressure while Pharma stocks witnessed maximum buying interest.
Steel stocks are trading weak led by Jindal Steel and Jindal Saw Limited. According to a leading financial daily, Steel Authority of India ltd. (SAIL's) sinter plant at Rourkela steel facility has become operational. At a sinter plant, iron ore fines and other fine materials are agglomerated at a high temperature enabling them to fuse together to make a single mass without changing much of their chemical properties. It is an energy efficient plant installed with latest waste heat recovery system. The plant has a machine area of 360 sq meters and capacity of 3.8 million tonne per annum (MTPA). The estimated cost of the plant is around Rs 6.9 bn. The sinter plants are part of the company's expansion and modernization plans.
Mining stocks are trading in the red led by Sesa Goa and Manganese Ore India Limited (MOIL Limited). According to a leading financial daily, Coal India has urged the government of India to speed up the process of clearance for its project. During the 12th Plan, the company has set a target of 615 million tonne (MT) in production and if that needs to be achieved, at least 70 projects with a capacity of about 180 MT need to be cleared. The Coal India board is set to meet on the 16th of this month to clear fuel supply agreement (FSAs) to feed about 28,000 mega watt (MW) of projects commissioned before December last year. The board had earlier turned down a government directive to commit at least 80% supply to power companies; the government then issued a formal Presidential directive. Since it is tipped to sign FSAs with 50 firms soon after the meeting, environment and forestry clearances are vital, as there will be a penalty clause for not meeting the committed supply.