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After opening the day in the red, the Indian benchmark stock indices witnessed further losses and continued to trade on a negative note. Sectoral indices are trading on a weak note with stocks from the pharma, FMCG and consumer durables sector witnessing maximum selling pressure.
The BSE-Sensex is trading down 143 points (down 0.6%) and the NSE-Nifty is trading down 39 points (down 0.5%). The S&P BSE Midcap index and the S&P BSE Smallcap index are also trading in the red, both down by 0.1%. The rupee is trading at 66.74 to the US$.
As per a leading financial daily, Coal India has reported that its mining project in Maharashtra will be commissioned by the end of this month. The project is undertaken by Western Coalfields Ltd (WCL), one of the subsidiaries of the company.
The said project comes with a production capacity of 3.25 MT (million tonnes) per year. In the current fiscal, WCL has already commissioned eight mines. Moreover, three mines which include Penganga OC mining project and Bhanegaon OC mine were commissioned during the last fiscal.
This marks an incremental move by Coal India to achieve its production target of one billion tonnes by 2020. Also, to aid in attaining this stupendous target, WCL is planning to enhance its coal production by 150%.
Coal India recently announced its second quarter results of the financial year 2015-2016 (2QFY16). It posted a 16% YoY increase in its net profit during the period. Income from operations increased 8.2% YoY during the quarter on back higher production and offtake during the 2QFY16. Tanushree Banerjee, Managing Editor of Stock Select, has recently released a detailed analysis of this result (subscription required).
Stocks in the energy space are trading mixed with Chennai Petroleum and Essar Oil leading the losses. According to an article in The Economic Times, India is soon going to join Pakistan in benefitting as equal stakeholder in the much delayed Turkmenistan-Afghanistan-Pakistan-Iran (TAPI) gas pipeline. The development comes as Prime Minister Modi visited Turkmenistan in July and in August India agreed on a joint ownership in the pipeline.
The pipeline is said to have the potential of meeting some of India's energy demands. Moreover, it is also looked as a major confidence building measure between the two countries after the Iran-Pakistan-India gas pipeline failed to take off.
The construction of the said pipeline is finally set to begin on 13 December 2015. The pipeline is said to be fully operational by the end of 2018 and the revised estimate of the cost of this project is set at US$ 10 billion.
As reported, Turkmenistan will lead the consortium with at least 51% stake. India and Pakistan will get 38 million standard cubic feet per day (mmscmd) each, while the remaining 14 mmscmd will be supplied to Afghanistan.
Meanwhile, on a separate note, oil rich Kazakhstan is willing to supply gas to India. According to Kazakh government officials, it could supply as much as 3 billion cubic metres of natural gas annually through a proposed pipeline from Turkmenistan to India.
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