Markets continue weak trade; oil stocks top gainers

Indian equity markets, which opened on a slightly listless note, continued trading lower in the late morning session amid alternate rounds of buying and selling in front line stocks. Investors were waiting for some prominent triggers before making any strong position in the market. In currency market, rupee depreciated against dollar amid increased demand for the US currency from importers. On sectoral front, oil stocks were leading the gainers as state-owned oil companies saw a big up move on hopes of a diesel prices hike, as government official last month was quoted in local media reports saying that petroleum ministry has proposed a gradual rise in diesel prices, by 1 rupee a liter every month over a 10-month period. Select IT, power and healthcare stocks were also trading in green, while financials, auto and metals were under pressure. In global markets, most Asian shares fell on Friday, following overnight weakness in global equities after senior Federal Reserve officials expressed worries over continuing bond buying, but the dollar extended gains as US debt yields rose. Back home, the market breadth favoring positive trend; there were 1,271 shares on the gaining side against 1,205 shares on the losing side while 110 shares remain unchanged.

The BSE Sensex is currently trading at 19,729.68 down by 35.10 points or 0.18% after trading in a range of 19,790.58 and 19,686.34. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.26% and Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 0.95%, PSU up by 0.94%, IT up by 0.71%, Teck up by 0.62% and Power up by 0.12% while, Metal down by 1.19%, Realty down by 0.81%, FMCG down by 0.69%, Auto down by 0.38% and Bankex down by 0.31% were the top losers on the index.

The top gainers on the Sensex were ONGC up by 2.38%, Wipro up by 1.48%, BHEL up by 1.22%, TCS up by 0.95% and NTPC up by 0.57%.

On the flip side, Sterlite Industries was down by 2.42%, Hindalco Industries was down by 1.86%, Jindal Steel was down by 1.85%, Tata Steel was down by 1.49%, and HDFC was down by 1.44% were the top losers on the Sensex.

Meanwhile, to enhance electricity generation in India, the oil ministry has notified guidelines for diversion of scarce gas between two or more power plants of the same owner. The ministry notified that the clubbing or diversion should not be for more than a year in total, which should lead to the higher electricity generation compared to the pre-clubbing arrangement.

According to the oil ministry, the step was taken in view of the fact that many power plants in the country were operating at low plant load factor (PLF) due to acute shortage in availability of domestic gas, leading to inefficient production of electricity. While, PLF is a measure of average capacity utilization, which can be affected by factors like non-availability of fuel and maintenance shut-downs.

The total gas-based power generation capacity in the country is nearly 19,000 MW but the gas available to the power sector is only 55 million metric standard cubic metres per day which can only feed around 10,000 MW capacity.

Further, the cost of the diverted gas would be according to the price based on the source of the diverted gas to avoid any financial burden on end consumers. Oil ministry added 'the entity seeking clubbing/diversion would bear any additional financial liability arising from the existing and future Gas Sale Agreement (GSA)/Gas Transport agreement (GTA) and any other swapping transaction resulting there from'.

The oil ministry also specified that end-use of the diverted gas would remain power supplier to state distribution companies and these steps will help many power plants operating at low capacity to improve their power generation.

The S&P CNX Nifty is currently trading at 5,995.00 down by 14.50 points or 0.24% after trading in a range of 6,011.95 and 5,982.70. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were BPCL up by 3.18%, ONGC up by 2.45%, Wipro up by 1.47%, PNB up by 1.25% and HCL Tech up by 1.21%.

On the flip side, Jindal Steel down by 2.18%, Sesa Goa down by 2.15%, Hindalco Industries down by 1.86%, DLF down by 1.80% and Tata Steel down by 1.71% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng dropped 0.50%, KLSE Composite slipped 0.20%, Straits Times declined 0.08%, KOSPI Composite contracted 0.71% and Taiwan Weighted was down by 0.39%.

On the flip side, Shanghai Composite up by 0.37%, Jakarta Composite added 0.17% Nikkei 225 was up by 2.72%.