Indian markets trade in the red

Fri, 16 Oct 01:30 pm

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After opening the day on a flat note, the Indian Indices inclined southwards and continued to trade negatively in the post noon trading session. Sectoral indices are trading on a mixed note with stocks from the banking and FMCG sectors leading the losses. However capital goods and auto stocks are trading firm.

The BSE-Sensex is trading down 47 points (down 0.2%) and the NSE-Nifty is trading down 14 points (down 0.2%). The BSE Mid Cap index is trading up by 0.1% while the BSE Small Cap index is trading marginally down. Gold prices, per 10 grams are trading at Rs 27,089 levels. Silver price, per kilogram, is trading at Rs 37,260 levels. Crude oil is trading in green with a gain of 2.4% or Rs 71 and is trading at Rs 3,057 per barrel. At the time of writing, the rupee stood at 64.89 to the US$.

As per a leading financial daily, IT services provider Cyient has posted its results for the second quarter ended September 30, 2015. The company has reported a 9.25% jump in its net profit to Rs 985.3 million on a YoY basis. Revenues stood at Rs 7,716 million for the quarter under review, reflecting a YoY growth of 14.8%.

The company has stated that budget cuts at a couple of large customers have impacted growth to some extent. Further, it added that with strong business pipeline across its services business, the revenue momentum will continue in the coming quarters.

It is important to note that the company has acquired the aerospace after-market services business of Pratt & Whitney Singapore, besides adding 20 new clients during the July-September quarter. Stock of the company is presently trading down by 10.8%.

<>Energy stocks are trading mixed with Gujarat Gas Ltd and Indraprashta Gas leading the losses. As per a leading financial daily, GAIL (India) and the Government of Jharkhand have signed a Gas Cooperation Agreement (GCA) for creation of Natural Gas and City Gas Distribution infrastructure. This will facilitate construction of 'Urja Ganga' Jagdishpur - Haldia Pipeline project in the state. The pipeline is slated to pass through six districts of Jharkhand, i.e., Bokaro, Giridih, Hazaribagh, Singhbhum, Ranchi and Dhanbad. The same will have a total length of 340 kms in the state, of which 174 kms will be the mainline and 166 kms spur lines.

Moreover, the GCA will also facilitate establishment of pipeline connectivity from the seven Coal Bed Methane (CBM) blocks awarded in the state to various consumption centers. Also, the 2,000 km-long JHPL, the 'Energy Highway' of Eastern India being constructed by GAIL, will carry eco-friendly Natural Gas to eastern Uttar Pradesh, Bihar, Jharkhand and West Bengal.

While expansion of gas pipeline network in these regions is a step in the correct direction, the government also needs to take steps to sort out the issue of shortage in domestic gas supply.