Indian indices pare losses

Thu, 29 Sep 01:30 pm

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The Indian stock markets pared all their losses during the last two hours of trade as investors chose to buy at lower levels. Stocks from the software, auto, FMCG and banking sectors are leading the pack of gainers, while those from the capital goods, consumer durables and metal sectors are trading weak.

The BSE-Sensexis trading up by 102 points while NSE-Nifty is trading 27 points above yesterday's closing. However, the BSE Mid Cap and BSE Small Cap indices are trading down by 0.4% and 0.3% respectively. The rupee is trading at 48.89 to the US dollar.

Energy stocks have been trading mixed with Oil and Natural Gas Corporation (ONGC), Petronet LNG and Bharat Petroleum Corporation Ltd (BPCL) leading the pack of gainers. However, Castrol India, Gujarat State Petronet and Essar Oil are trading weak. As per a leading financial daily, Gas Authority of India Ltd (GAIL) has acquired its first shale gas asset in the US. The company has invested around US$ 95 m for 20% interest in Carrizo's Eagle Ford Shale acreage position. It has acquired stake through its wholly owned subsidiary GAIL Global (USA) Inc that was set up a day before. As per the company management, the Joint Venture (JV) will have 20,200 gross acres, out of which GAIL subsidiary would have 4,040 net acres spread over four counties in Texas.

The partners will spend around US$ 300 m over the next five years to develop the asset, the major part of which will be funded by GAIL Global. This includes upfront cash payment of US$ 63.7 m and a carry amount of US$ 31.3 m linked to Carrizo's future drilling and development costs. The JV is expected to drill additional 139 wells in the acreage. Carrizo will continue to function as the operator for the joint venture which will include eight wells in the acreage (currently producing about 2,350 net barrels of oil equivalent per day). GAIL's share out of this will be 470 barrels of oil equivalent per day. However, the stock of the company is trading weak.

Food & Tobacco stocks have been trading mixed with Wadala Commodities, ITC Ltd and Britannia Industries leading the pack of gainers. However, United Spirits and Sterling Biotech are trading weak. As per a leading financial daily, ITC has acquired 26% stake in a 275-room, five-star luxury hotel property being developed by Noida-based Logix Group in Noida. The company plans to invest close to Rs 1 bn in the project and will also manage it under the top-end ITC hotels brand. The total project cost of the hotel, which is part of a larger seven-acre commercial and retail development called Riviera 105, is Rs 4.4 bn. The construction of the hotel is expected to be over in 3 years.