The major Asian stock markets have opened the day on a firm note with the stock markets in Japan (up 1.3%) and Singapore (up 0.6%) leading the gains. However, the stock markets in China (down 1.9%) and Hong Kong (down 0.8%) were facing selling pressure. The Indian stock markets have also opened on a positive note. Among the sectoral indices, stocks from capital goods and auto are witnessing maximum buying interest whiles software and metal stocks are leading losses.
The BSE-Sensex currently trading higher by about 121 points (up 0.43%), while the NSE-Nifty is higher by about 20 points (up 0.22%). The Midcaps and small caps have too opened the day in green, with BSE Mid Cap and BSE Small Cap indices up by 0.35 % and 0.40% respectively. The rupee was trading at Rs 61.49 to the dollar.
Energy stocks have opened the day on a firm note with Essar oil and Mangalore refinery Petrochemicals Ltd (MRPL) being the leading gainers in the pack. As per a leading financial daily, state-owned Oil and Natural Gas Corporation Ltd (ONGC) has agreed with its partner Cairn India Ltd for extending the prolific Rajasthan oil block license beyond the contractual deadline of 2020. The ONGC board has approved this extension without any conditions. Reportedly, ONGC as a licensee of the block, produces around 181,000 barrels per day of oil, pays royalty to the government on not just its 30% stake but also on Cairn's 70% interest. While the royalty is later cost recovered, the company faces cash flow issues because of having to pay in advance.
Pharma stocks have opened the day on a firm note led by Cipla Ltd and Wockhardt Ltd. As per a leading financial daily, India's biggest pharmaceutical company Sun Pharmaceuticals Ltd, which has recently acquired Ranbaxy is still open for another acquisition but will consider the business which do not require much integration effort. As per the Managing Director Dilip Sanghvi ,the company, however, would be confined to such opportunities that do not put too much pressure on the management. The Ranbaxy acquisition is under way and is expected to get concluded soon.