The major Asian stock markets have opened the day on a mixed note with stock markets in Taiwan (down 0.9%) and South Korea (down 0.7%) leading the losses. However, the stock markets in Japan (up 0.9%) and China (up 0.4%) have opened in the green. The Indian share market indices have opened the day on a firm note. Stocks in the consumer durables and IT space are leading the gains. However, FMCG and pharma stocks have opened in the red.
The Sensex today is up by around 27 points (0.1%), while the NSE-Nifty is up by around 2 points (0.03%). Mid and small cap stocks are trading in the green with the BSE Mid Cap index and the BSE Small Cap index up by around 0.3% and 0.2% respectively. The rupee is trading at Rs 54.34 to the US dollar.
Auto stocks have opened the day mainly in green with Mahindra & Mahindra Ltd and Maruti Suzuki Ltd leading the gains. However, TVS Motors Ltd and Hero MotoCorp Ltd are facing selling pressure. As per a leading financial daily, India's largest two-wheeler manufacturer Hero MotoCorp Ltd will invest Rs 9.5 bn in Rajasthan. The company will invest this amount to commission its fourth production unit, a global parts centre (GPC) and an integrated state-of-the-art research & development (R&D) facility in the state. While the two-wheeler manufacturing unit would be set up on a 47-acre site at Neemrana at an investment of Rs 4 bn, the GPC would come up at the same location at an investment of Rs 1.5 bn. The manufacturing facility would have capacity to roll out 750,000 units a year. Besides, the company has earmarked an investment of Rs 4 bn to set up an integrated R&D centre at Kukas near Jaipur. As per the company management, both the factory and the parts centre will become operational by the end of FY14. Meanwhile, the company has been grappling with labour disquiet at its Gurgaon facility where wage negotiations have been on for the past six months.
As per a leading financial daily, the government has deferred the implementation of controversial tax-avoidance rules, also known as General Anti Avoidance Rule (GAAR) until 2016. The move has brought relief to the markets and industry. It is likely to stimulate business confidence of investors, which had taken a beating with the introduction of tax proposal. It is important to note here that the GAAR rules intend to clamp down tax avoidance by denying tax benefits to any arrangement made with sole aim to avoid tax.