Asian stock markets have opened the day on a firm note. Stock markets in Singapore (up 0.4%), Malaysia (up 0.3%) and China (up 0.3%) are trading in the green. The Indian stock markets have opened the day on a firm note as well. Stocks in the Realty and Banking space are leading the gains.
The BSE-Sensex is trading up by 150 points (0.9%), while the NSE-Nifty is up by around 50 points (1%). Mid cap and small cap stocks are also trading in the green, with the BSE Mid cap and BSE Small cap indices up by 0.6% and 0.4% respectively. The rupee is trading at Rs 51.21 to the US dollar.
Auto Stocks have opened the day on a firm note with Tata Motors and Ashok Leyland trading firm. Tata Motors is planning to invest Rs 6 bn in developing new type of vehicles - Futuristic Infantry Combat Vehicles (FICV). In case if the company goes ahead with the plan, they will set up a manufacturing plant for the same. The company said that the development cost of FICV can be in the range of Rs 3 bn and the plant could cost at least Rs 2.5 bn. This development has taken place because the company has received Expression of Interest (EOI) to supply 2,000 units of FICV. However, the tender process is yet not complete and the company is waiting for the final decision. In case if the company wins the order, this new facility for FICV will be set up at Dharwad in Karnataka.
PSU Bank stocks have opened the day on a firm note with State Bank of India (SBI) and Bank of Baroda trading in the green. SBI has finalised to lend Rs 25 bn to Neyveli Lignite Corporation Ltd. This will be a part funding provided for the expansion of new 2 x 500 MW thermal power station project. Both these units will be completed and commissioned by June and December 2015. Neyveli Lignite has decided to go for a debt to equity in the ratio of 70:30 and the project is estimated to cost Rs 59. The fuel to run the plant will come from the mines operated by the company and the power generated by it will be supplied to Tamil Nadu and other neighboring states.