Indian stock market indices made further inroads into the negative territory over last two hours of trade led by weak global cues. All sectoral indices are trading in the red. Realty and Metal stocks are witnessing maximum selling pressure.
Engineering stocks are trading weak led by Punj Lloyd and Suzlon Energy. As per a leading financial daily, Larsen and Toubro's (L&T) Hydrocarbon Mid and Downstream Business segment has secured an order worth Rs 7 bn from Petroleum Development Oman LLC. The order is for setting up a green-field project planned to treat an average of 3 m metric standard cubic metres per day (mmscmd) of gas. The firm faced stiff competition from reputed international bidders. The contract involves project management, residual basic design, planning and monitoring, residual process engineering, detailed engineering, procurement, supply, fabrication etc. Although this is a positive for the company and will add to the order book, execution will remain the key. The stock was trading in the red.
Steel stocks are trading in the red led by SAIL and JSW Steel. As per a leading financial daily, Steel Authority of India Limited (SAIL) is planning to foray into mining of manganese ore in the central Indian province of Rajasthan as a backward integration move for its ferro-alloys manufacturing facilities. Currently, it is restricted to the extraction of iron-ore. As per the company management, it will sign a memorandum of understanding (MoU) with the government of Rajasthan for lease of a manganese reserve in the state. The ore thus extracted will be used for captive use for conversion into ferro-alloys and meet internal requirement of its steel producing units. The manganese ore from Rajasthan would be supplied to the SAIL Chandrapur Ferro Alloys unit (formerly known as Maharashtra Elektrosmelt). Simultaneously, the company is also setting up a greenfield manganese ferro-alloy plant in a joint venture with MOIL to be operationalised in 2013.