Markets start on a negative note

Thu, 17 Jun 09:30 am

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The Indian markets have started today's session on a negative note. The benchmark indices opened above the breakeven mark but soon fell into the negative territory. They have managed to inch back towards the dotted line since then. Other key Asian markets are in the red with Japan (down 0.4%) leading the pack of losers. The US markets closed higher by 0.1% yesterday.

Currently in India, heavyweights from the BSE-Sensex are trading weak with banking and metal majors facing the brunt of selling activity. The BSE-Sensex is trading lower by around 4 points, while the NSE-Nifty is down by about 9 points. However, buying interest is being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.2% and 0.3% respectively. The rupee is trading at 46.46 to the US dollar.

Energy stocks have opened the day on a positive note. Gainers here include Indraprastha Gas and Gujarat Gas. As per a leading business daily, Indraprastha Gas has hiked the price of CNG price in Delhi by over 25%. The price will go up by Rs 5.6 per kg to Rs 27.5 per kg in Delhi. It will cost Rs 30.6 per kg in Noida, Greater Noida and Ghaziabad. This move comes on the back of the government's decision to more than double the price of APM gas to US$ 4.2 per m British thermal unit. APM gas forms bulk of Indraprastha Gas' supply basket. Prior to the price hike, CNG gave about 40% more savings than diesel and 67% more than petrol in the national capital. After the hike, CNG would be 28% cheaper than diesel and 59% cheaper than petrol. Hence, even after the hike, CNG in Delhi remains among the cheapest auto fuels in India. It may be noted that the company has not increased the price of gas that it pipes to households for the purpose of cooking. Piped natural gas will continue to be priced at Rs 15.9 per cubic meter.

Power stocks have opened the day on a negative note. Losers here include NTPC and Reliance Power. As per a leading business daily, Tata Power's 1,600 mega watt (MW) project in Raigad, Maharashtra has been cleared for launch. After five years of opposition and negotiations, the company has concluded the official formalities for joint survey of the affected land by the district collectorate and the concerned farmers. It has also received the approval for its compensation package to the owners of 1,200 acres of land, from the state government's high-powered committee. The land will be soon transferred to the Maharashtra Industrial Development Corporation, which will then transfer the land on lease to Tata Power. The company has a power generation capacity of 1,877 MW in the state. It plans to begin construction for the imported coal based Raigad project by October this year. The plant is set be operational by 2014.