All major Asian stock markets have opened the day on a firm note with stock markets in Japan (up 1.3%), Hong Kong (up 1.2%) and Indonesia (up 1.1%) leading the gains. The Indian stock markets have also opened the day on a firm note. Stocks in the realty and metal space are leading the gains.
The BSE-Sensex is trading higher by 176 points (1.1%), while the NSE-Nifty is up by around 54 points (1.1%). Mid cap and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small cap indices up by 1.1% and 0.9% respectively. The rupee is trading at 50.23 to the US dollar.
Energy stocks have opened the day on a strong note with Reliance Industries Limited (RIL) and Cairn India leading the pack of gainers. Cash rich Reliance Industries (RIL), has announced that it will consider a share buyback program. The stock of RIL has fallen severely in the current market condition. RIL is controlled by Mr Mukesh Ambani. The stock of RIL was down by more than 35% in 2011 and has underperformed the broad markets by a wide margin. The details of the buyback program are yet not known. The last buyback program by RIL was done in the year 2004. Then, the company could only deploy around 5% of its planned purchase as the stock price had zoomed quite high.
Telecom stocks have opened the day on a mixed note with Reliance Communication and Mahanagar Telephone Nigam Limited (MTNL) trading firm. However, Bharti Airtel and Tata Communications are facing selling pressure. Recently, Reliance Communications refinanced its debt from a consortium of Chinese banks and will now have to repay the loans after a 7 year period. After completing the same, Reliance Communication now plans to raise funds of around US$ 1.5 bn. This will be done through an initial public offering (IPO) of one of its subsidiaries for undersea cable unit in Singapore. Reliance Communication, heavily debt-laden, is planning to list the unit as a business trust in Singapore. Its promoter, Mr Anil Ambani, may sell upto 75% of its stake in the planned IPO. A newspaper