Asian stock markets have opened the day on a firm note with Japan (up 1.6%) and China (up 0.6%) leading the gains. However, markets in Japan (down 0.8%) and Hong Kong (down 0.5%) are trading weak. The Indian share markets have also opened the day on a positive note. Stocks in the metal and capital goods space are leading the gains.
The Sensex today is up by around 43 points (0.2%), while the NSE-Nifty is up by around 11 point (0.2%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.5% each. The rupee is currently trading at Rs 61.62 to the US dollar.
Mining stocks have opened the day on a firm note with Hindustan Zinc, Sesa Sterlite and National Mineral Development Corporation (NMDC) leading the gains. As per a leading financial daily, the Cabinet Committee on Economic Affairs (CCEA) has given an approval to sell the residual government stake in Hindustan Zinc through the auction route. The 29.5% stake sale in Hindustan Zinc at current prices could fetch the government Rs 170 bn. It must be noted that Hindustan Zinc has ceased to be a government company for almost a decade. The stake sale will help the government in achieving its divestment target for the fiscal pegged at Rs 540 bn.
Steel stocks have opened the day on a firm note with Adhunik Metaliks, Tata Steel and JSW Steel leading the gains. As per a leading financial daily, state-run Steel Authority of India Ltd (SAIL) has announced its plans for the second phase of expansion in Bokaro. The company is currently setting up 5.7 million tonnes (MT) capacity in Bokaro with a capital outlay of Rs 60 bn. In the second phase, the company plans to invest Rs 600 bn to raise the capacity by another 10 MT. It is worth noting that this would be the highest investment among SAIL's five integrated steel mills where it plans capacity expansions in order to increase the overall capacity to 50 MT by 2025. Currently, SAIL has hot metal capacity of about 14 MT.