Indian share markets after opening flat fell into the negative territory in the post-noon trading session. Barring IT and pharma, all the sectoral indices are trading in the red with realty and power stocks being the biggest losers.
Most of the energy stocks are trading mixed with Essar Oil and Indraprastha Gas being the major gainers whereas Cairn and Reliance Industries are trading in the red. As per a leading financial daily, the government is contemplating setup of three new petrochemical investment regions in Karnataka, Maharashtra and West Bengal. Currently there are four such regions namely Dahej in Gujarat, Paradeep in Odisha, Vishakhapatnam in Andhra Pradesh and Cuddalore in Tamil Nadu. A Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) is a designated area of around 250 sq kms for establishing manufacturing facilities for domestic production and exports. As per policy, the centre has to provide PCPIRs with all infrastructure linkages such as rail, road connectivity to national highways, ports, airports as well as telecom connectivity. Completed PCPIRs in the above four states, that were approved in 2009, are expected to generate investments to the tune of Rs 7.6 trillion. Out of the above, PCPIRs in Gujarat and Odisha are in the final stages.
Telecom stocks are trading on a mixed note today. While Tata Communication is trading down, Himachal Futuristic is trading firm. As per a leading business daily, India's third largest telecom services operator Idea Cellular is planning to raise Rs 7.5 bn by issue of shares to Axiata Group. The company will issue 51 m equity shares on a preferential basis to the group at around Rs 144.68 per share. Axiata is already an existing investor in Idea Cellular as a minority shareholder and holds 19.89% stake. The issue is pursuant to the company's resolution passed by the board in August 2013. The issue is now subject to necessary approvals for which the company would convene extraordinary general meeting on 10 July. Further, last week the company raised Rs 30 bn by selling shares to institutional investors through QIP route at a price of Rs 134 a share. The company plans to invest up to Rs 35 bn in FY15 to build network and launch its 3G services in Delhi next year. The stock is trading down by 0.9% today.