The Indian markets have started today's session on a firm note. The benchmark indices opened above the breakeven mark and have managed to stay in the positive territory despite downward movements. Other key Asian markets are trading in the green with Taiwan (up 1.4%) leading the pack of gainers. The US markets closed higher by 1.5% yesterday.
Currently in India, heavyweights from the NSE-Nifty are trading a mixed bag with metal, software and auto stocks witnessing buyers' interest. However, FMCG and power heavyweights are in the red. The BSE-Sensex is trading higher by around 37 points, while the NSE-Nifty is up by about 11 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.8% and 1% respectively. The rupee is trading at 46.55 to the US dollar.
Auto stocks have opened the day on a strong note. Gainers here include TVS Motor and Eicher Motor. As per a leading business daily, the joint venture between M&M and Renault, will be revamped. Mahindra Renault manufactures the Logan sedan from Nashik. M&M holds 51% stake in the venture. It has been making losses resulting in a diminution in Renault's brand value. In our view, this development is an effort by Renault to protect its brand name at a time when it is rolling out its products and marketing set up independently in India. It may be noted that most global auto companies are now eyeing the Indian auto markets, which is among the few growth stories for the industry worldwide.
Engineering stocks have opened the day on a positive note. Gainers here include Crompton Greaves and Engineers India. As per a leading business daily, engineering major L&T is set to enter the general insurance sector after receiving the initial approval from the Insurance Regulatory and Development Authority (IRDA). There are three stages of approval required for getting a licence for an insurance company. R1 is the preliminary approval. In R2, IRDA looks into the business model of the company and in R3, it looks at the formation of the company. L&T has received R1 approval so far and will require around three to four months to start the venture. There are currently 22 non-life insurance companies in India currently and the competition is already intense.