Asian stock markets have opened the day on a weak note. Barring China (up 1.4%), the other major stock market were in red. Markets in Korea (down 1.3%), Singapore (down 0.8%) and Hong Kong (down 0.8%) are leading the pack of losers. The Indian stock markets have opened the day on a weak note as well. Stocks in the banking and FMCG space are leading the losses.
The BSE-Sensex is trading lower by 161 points (1.0%) and the NSE-Nifty is lower by around 50 points (1.1%). Mid cap stocks have opened the day in the red as well with the BSE Mid cap down by 0.2%. However, small cap stocks are trading in the green with the BSE Small cap index up by 0.1%. The rupee is trading at 52.84 to the US dollar.
Power stocks have opened the day on a mixed note with Reliance Power and Torrent Power trading in the green while Suzlon Energy is trading in the red. Northern Coalfields (NCL), a state run company has decided to surrender some of its land to Reliance Power. This land is required to mine two blocks attached to the Sasan Ultra Mega power project. This will give Reliance Power a benefit of over Rs 60 bn which will accrue to it over its life time. The coal mined from the fields of Moher, Amlohri and Chhatrasal block will fuel Reliance Power's Sasan and Chitrangi projects. Both these projects are being constructed in Madhya Pradesh and are of 4,000 mw each. The total investment by Reliance Power for this project is around Rs 360 bn.
Auto stocks have opened the day on a weak note with Ashok Leyland and Tata Motors (Telco) leading the losses. After the successful launch of XUV, Mahindra & Mahindra's (M&M) Vice Chairman, Mr Anand Mahindra, has announced that the home made utility vehicle is in the process of developing new SUVs (sports utility vehicles). These SUVs will be made in partnerships with its Korean partner, Ssangyong. This will bring a pipeline of future launches in the SUV category. M&M is also trying to give a thrust to its 2-wheeler and heavy commercial segments which have not been successful so far. Mr Mahindra further said that M&M is a marathon player indicating that they are in this industry for a long haul.