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Barring Indonesia (up 0.3%) and South Korea (up 0.1%), major Asian stock markets have opened the day on a weak note with stock markets in Japan (down 1.5%) and Singapore (down 0.4%) leading the losses. The Indian share market indices have opened the day on a weak note. Stocks in the auto and consumer durables space are leading the losses. However, FMCG stocks are trading firm.
The Sensex today is down by around 63 points (0.3%), while the NSE-Nifty is down by around 20 points (0.3%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 0.4% and 0.3% respectively. The rupee is trading at Rs 53.88 to the US dollar.
Auto stocks have opened the day on a weak note with Tata Motors and Hero MotoCorp leading the losses. India's leading vehicle manufacturer Tata Motors has bagged an order from Bharat Electronics (BEL) for 6x6 multi-axle mobility vehicles to mount radar applications for the Indian Air Force. As per the order, the company will supply 26 such vehicles to BEL Bangalore. These vehicles will give BEL's radar system the mobility to be placed strategically at almost any location. They will be able to detect low-flying aircraft, spy planes or unmanned aerial vehicles. Tata Motors is also in the process of delivering 96 specialist tractors for the Indian defence forces Akash missile programme. The company offers a full range 6x6, 8x8 and 12x12 multi-purpose high mobility carriers. These carriers are designed especially for integrating specialist rocket and missile systems.
Private bank stocks have opened the day on a weak note with Federal Bank, City Union Bank, Yes Bank and Dhanlaxmi Bank leading the losses. As per a leading financial daily, private sector lender Yes Bank is planning to focus on micro, small and medium enterprise (MSME) portfolio. It plans to grow this portfolio by Rs 5 bn in the January-March quarter (4QFY13). The private bank is likely to end the financial year with a MSME loan portfolio of Rs 70 bn. It had targeted a portfolio of Rs 75 bn. But it has been unable to meet its target on account of pressure on the bad loans front across the banking sector. Yes Bank's MSME portfolio currently stands at around 15% of the total loan book. It is worth noting that the total loan book of the mid-sized bank stood at Rs 438.56 bn as on December 31, 2012.