Debt woes of Greece have come back to haunt the global markets. Most Asian stock markets have opened the day on a weak note with stock markets in Indonesia (down 1.2%) and South Korea (down 1%) leading the losses. However, markets in Taiwan (up 2.6%) are trading firm. The Indian stock markets have opened the day on a weak note. Stocks in the capital goods and power space are leading the losses.
The BSE-Sensex is trading lower by 133 points (0.8%), while the NSE-Nifty is down by around 43 points (0.8%). Mid cap and small cap stocks are also trading in the red with the BSE Mid cap and BSE Small cap indices down by 0.2% and 0.1% respectively. The rupee is trading at 49.40 to the US dollar.
Engineering stocks have opened the day on a weak note with Bharat Heavy Electricals (BHEL) and Larsen And Toubro (L&T) leading the losses. Capital goods company Siemens is expecting a double-digit growth in revenues in the cities and infrastructure sector. As far as sustainable development of urban infrastructure is concerned, the company possesses the expertise to provide green efficient product solutions. Siemen's infrastructure and cities division includes rail systems, logistics, low and medium voltage, smart grid, building technologies among others. At Rs 30 bn, this division comprises about 25% of the company's total business revenue. The company recently inaugurated two new factories in India which have been set up with an investment of Rs 2 bn. This takes the company's total number of factories in India to 21.
As per a leading financial daily, Mukesh Ambani-led Reliance Industries Limited (RIL) and Anil Ambani-led Reliance Power are deliberating on the prospects of jointly developing their adjoining coal-bed methane (CBM) blocks. This would be an opportunity for the two brothers who parted ways some years back to do business together again. If the two join forces in developing the adjoining CBM blocks in Madhya Pradesh, it will help optimise costs by developing common infrastructure. In a joint statement issued in May 2010, the two brothers had cancelled the non-compete arrangement between them. While RIL is facing selling pressure, Reliance Power is trading firm.