Asian stock markets have opened the day on a mixed note. Stock markets in Japan (up 0.4%), Taiwan (up 0.3%) and Hong Kong (up 0.2%) are trading firm. However, stock markets in China (down 0.4%) and Indonesia (down 0.2%) are trading in the red. Indian stock markets have opened the day on a firm note. Stocks from the capital goods, realty and auto space are leading the gains.
The BSE-Sensex is trading higher by around 191 points (1.1%), while the NSE-Nifty is up by around 50 points (0.9%). Mid and small cap stocks are also trading firm, with the BSE Midcap index and BSE Small cap index up by 1% and 0.7% respectively. The rupee is trading at 45.09 to the US dollar.
IT stocks have opened the day on a firm note with Tech Mahindra, Financial Tech and HCL Tech trading firm. The CEO & Managing Director of TCS, Mr. N. Chandrasekaran has affirmed the positive outlook for outsourcing services across sectors and expects client spends to be better in FY12. According the him, IT outsourcing demand in Europe is recovering but is still not up to the mark. However,the outlook for North America, its largest exports market, remains strong. And as demand for outsourcing improves, the pricing is also expected to go up. TCS has not seen any business impact from the unrest in Middle East and North Africa. The company, which recruited about 50,000 employees last year, would hire almost the same number of new employees this year. However, a firmer rupee, rising wages, macroeconomic uncertainty and competition from global firms remain the key risks for the IT industry. Last month, TCS had said that it expects to achieve US $1 bn revenue over five years by providing technology solutions to small-and-medium business units. As of now, the revenue from this area is very miniscule.
Auto stocks have also opened the day on a firm note with Tata Motors, Ashok Leyland and Exide Inds leading the gains. M&M is planning to team up with SsangYong Motor in an attempt to shore up its electric vehicles' business. M&M will collaborate with SsangYong Motor to produce the latter's electric variant of the crossover model, Korando. M&M looks to launch the Korando C and the Rexton for the Indian market in early 2012. India's largest utility vehicle maker took management control of SsangYong Motor last month.
This could be the first step towards a synergistic approach. These developments are happening as a result of rising fuel prices which have triggered demand for eco-friendly products. Electric vehicles, which suffer from premium pricing and infrastructure bottlenecks, have become cheaper after the government provided a subsidy of 20% in December 2010.