Most major Asian markets have opened the day on a positive note. Markets in Taiwan (up 1.2%), Japan (up 0.8%) and China (up 0.5%) and Indonesia (up 0.5%) are the main gainers. However, markets in Hong Kong (down 0.2%) are trading weak. Indian markets have opened the day on a firm note. Auto, banking and FMCG stocks are leading the gains.
The BSE-Sensex is trading higher by around 165 points (0.9%), while the NSE-Nifty
is up by around 45 points (0.9%). Mid and small cap stocks are also trading firm, with the BSE Midcap index and BSE Small cap index up by 0.9% and 0.5% respectively. The rupee is trading at 45.18 to the US dollar.
Oil & gas stocks have opened the day on a strong note. Oil marketing firms such as IOC, BPCL and HPCL are leading the pack of gainers. This is following their proposal to raise petrol prices by up to Rs 4 per litre this week. This move is aimed at offsetting rising crude oil costs. The Union Budget 2011-12 that was announced yesterday had ignored their demand to cut duties on the fuel. The excise duty, a central levy on domestic production on petrol, is Rs 14.35 a litre. The government had deregulated petrol prices in June last year. However, the three state-run oil companies informally consult the ministry before revising petrol rates. The three companies control over 90% of domestic fuel retail market.
Oil companies are currently losing Rs 10.7 a litre on diesel, Rs 21.6 a litre on kerosene and Rs 356 on an LPG cylinder.
Auto stocks have also opened the day on a firm note with Tata Motors, M&M, and Ashok Leyland trading firm. Tata Motors is about to unveil a new compact car called Pixel exclusively for the European market. The car is based on its micro-car Nano platform. The three door gull-winged (doors that open towards the sky) small car is currently at concept stage. This new brand will be an experimental model for the European market. It is expected to have Nano dimension of size, which is a little over 3 metre. But the car will have much larger interiors and the design would be developed keeping in mind the demanding European customers.