Diesel, kerosene and LPG price likely to be hiked by July

The oil ministry has submitted a proposal to the Empowered Group of Minister (EGOM) for fuel price hike. The ministry has proposed that customs duty on crude oil be scrapped along with the excise duty on diesel.  The ministry has sought a Rs 4 hike on diesel, if duty stays. Similarly, Rs 150 hike in liquefied petroleum gas (LPG) and Rs 9 hike in kerosene would help the ailing oil and gas sector, says the oil ministry. 

Meanwhile, the government is expected to raise diesel, cooking gas and kerosene prices next month after a gap of one year as cash-strapped state oil marketing companies complain that their borrowings have risen alarmingly and they will be forced to cut fuel supplies, starting with cooking gas.

Sensex consolidates

Volatile trade has been continued for the third consecutive day today, especially after a fall in previous four sessions to four-month low. The Nifty too has been consolidating in a narrow range of 5250-5300 since Tuesday.

Experts feel that there would be breakdown, citing gloomy picture across the globe and one more round of rate hike from RBI.

Nilesh Shah, Managing Director and CEO of Envision Capital feels that valuations of Indian equities have become attractive; however, investor mood is still pessimistic. “The Nifty may break its 5,200 lows if Reserve Bank of India (RBI) continues to raise policy rates,” he said.

The 30-share BSE Sensex was trading at 17,584, up 34 points and the 50-share NSE Nifty went up just 5 points to 5,282. However, broader indices continued to reel under selling pressure, with falling 0.5%.

Quiet session on Dalal Street

It was a quiet session on Dalal Street, with frontline indices hovering around Tuesday’s closing.

The Nifty ended the session absolutely flat at 5,278, while theSensex closed marginally in the red.

Experts say there has been a breakdown. According to experts, the Nifty may find support at 5,000-5,100 level.

Tatas moves HC

Tata Motors on Wednesday moved against the West Bengal Government challenging its controversial Singur land bill in the Calcutta High Court. The Bill effectively scrapped the Tata-Singur deal returning land to the unwilling farmers.

The Calcutta High Court, however, refused to hear ex-parte Tata Motors' petition challenging the Singur Land Act and Justice Soumitra Pal directed the Tata counsel to serve copy of petition to the state Advocate General for hearing at 12:05 pm.

The Bill also ensures redistribution of land from anywhere in the 997-acre plot allotted to Tata Motors in 2008 by the Left Front government. The Singur Land Rehabilitation and Development Bill was passed on June 14, with the Left staging a walkout. The Bill has already received governor's assent.

The government meanwhile made amendments to the bill to ensure that land can now be redistributed from anywhere in the 997 acre plot - even the 600 odd acres that was leased to Tata Motors.

"We will move the high court tomorrow," Barrister S Pal, who is representing Tata Motors, told said. Asked which part of the Singur Land Rehabilitation and Development Bill, 2011, would they will be challenging, he said, "We are challenging the whole act."

Sensex see-saws

Equity benchmarks were lacklustre in trade today after seeing a jump in early trade. However, the broader indices were witnessing some selling pressure, with falling half a percent. Even the market breadth was in favour of declines - two shares declined for every one share advancing.

European as well as select Asian markets too were quiet in trade while only Nikkei outperformed other markets, with gaining nearly 2%.

The 30-share BSE Sensex was trading at 17,556, down 4 points while the 50-share NSE Nifty gained just 6 points at 5,282.