Indian stock markets pared most of its early gains led by selling activity among index heavyweights during the previous two hours of trade. However, the mid and small capitalization stocks continued to remain high. Among the sectoral indices, barring consumer durables and IT stocks all are trading on a firm note.
The BSE-Sensex is trading up by 28 points and the NSE-Nifty is trading up by 15 points. The BSE Mid Cap index is trading higher 0.8% and the BSE Small Cap index is trading higher 0.9% today. The rupee is trading at 61.05 to the US dollar.
Energy stocks are trading mixed. While Gujarat Gas is trading firm, Indraprastha Gas is trading down. As per a leading business daily, India's largest oil marketing firm Indian Oil Corporation (IOC) plans to raise the processing of cheaper crude oil varieties to 30% of its total production by 2017-18. The move is as per the company's effort to improve margins. In FY14, the company has processed 54.7 m tonnes (30% of nation's refining capacity) of crude oil into fuel. The costs of crude oil constitutes as high as 95% of total input cost in the refinery process. As such, reducing cost of crude oil has been focus area for company to increase margin. As a result, IOC is looking to optimize the refinery operations by enhancing capabilities to produce cheaper crude varieties which are tougher and contains high concentration of sulphur and other metals. In FY14, IOC processed 16.1% heavy and high TAN (total acid number) crude, which is cheaper grade crude as compared to 11.5% in FY13. IOC is higher by 2.2% today.
Most food stocks are trading on a firm note led by Britannia and Nestle. Kolkata based cigarettes to hotel major ITC has forayed in to e-cigarettes with a launch of two electronic-cigarettes under the Eon brand. ITC has alunched the E-cigarettes in Hyderabad and Kolkata which will be rolled out on a pan India basis in phases. The product has been designed in-house but is being manufactured in China. The move is as per the company's endeavor to offset the shrinking sales of its conventional tobacco cigarettes on account of continuous price increase. Unlike the conventional tobacco cigarettes, electronic one release vapor that does not contain tar when a nicotine-laced liquid is heated. Being tobacco-free such products are not subject to regulations of Cigarettes and Tobacco Products Act. ITC is trading lower by 0.3% today.