Indian equity markets continued to trade in the green during the previous two hours of trade. Barring FMCG, automobile and consumer durable stokcs, all sectoral indices are trading firm.
The BSE-Sensex is trading higher by 27 points and NSE-Nifty is trading up by 5 points. BSE Mid Cap and BSE Small Cap are trading higher by 0.2% each. The rupee is trading at 54.46 to the US dollar.
Fertilizer stocks are trading weak led by Nagarjuna Fertilisers and Zuari Indsutries. As per a leading daily, a unit of Tata Chemicals at Babrala, Uttar Pradesh is facing weak demand for its customized fertilizers. Customized fertilizers are a combination of micro nutrients such as sulphur, zinc and boron with regular fertilizers such as urea and di-ammonium phosphate (DAP) and potash. These are blended in specific proportions as required by the specific crops and soils. Weakened demand has resulted in fall in output at the plant. The plant is now operating at less than half of its installed capacity of just about 40%. The current installed capacity is 130 b tonnes.
Auto stocks are trading firm led by Jindal Drill and Oil and Natural Gas Corporation (ONGC). As per a leading daily, Hindustan Petroleum Corporation Limited (HPCL) has received the government's assistance to set up a refinery in Rajasthan. The energy company has received financial assistance to the tune of Rs 33.7 bn. We may note here that the Chief Minister of the state, Mr Ashok Gehlot had requested the Union Petroleum Minister, Mr Moily to ask HPCL to set up a refinery to fulfill the pending demand of Rajasthan state. HPCL is now expecting to receive all necessary approvals by ministry in time so that the work can start thereafter. At present, HPCL has 2 refineries, one each in Mumbai and Vishakhapatnam. First one has a capacity of 6.5 m metric tonnes per annum (MTPA) while the other has a capacity of 7.5 MTPA.