Most major Asian stock markets have opened the day on a weak note with stock markets in Hong Kong (down 1.3%), Japan (down 1%) and Singapore (down 0.9%) leading the losses. The Indian stock markets have also opened the day on a weak note. Stocks in the metal and banking space are leading the losses. However, healthcare stocks are trading in the green.
The BSE-Sensex is down by 114 points (0.7%), while the NSE-Nifty is down by around 37 points (0.7%). Mid cap and small cap stocks are also trading in the red, with the BSE Mid cap and BSE Small cap indices down by 0.4% and 0.2% respectively. The rupee is trading at Rs 51.56 to the US dollar.
Auto stocks have opened the day on a weak note with Maruti Suzuki and Ashok Leyland leading the pack of losers. Mahindra & Mahindra Ltd. (M&M) has signed a financier agreement with Karur Vysya Bank (KVB) for its customers to get vehicle financing. These services will be offered from M&M's branches. This tie-up will help M&M and KVB to leverage their strengths. M&M has a vast network of more than 250 dealers, while KVB has a branch network of more than 450 branches. The MD & CEO of the bank said that it is expanding its operations in commercial and passenger vehicle financing segment. This arrangement with M&M is one such initiative. The management of M&M said that the company is relentlessly looking at options to provide the best services to its customers and this strategic tie-up will empower the customers.
Telecom stock have opened the day on a firm note with Reliance Communications, Mahanagar Telephone Nigam Limited (MTNL) and Tata Teleservices trading in the green. As per a leading financial daily, India's largest telecom firm Bharti Airtel is in advanced discussions with Qualcomm, a US-based chipmaker, to buy its fourth-generation (4G) licenses for about Rs 60 bn. While Bharti has permits for only 4 circles, Reliance Industries Limited (RIL) has licenses for the entire country. So if the deal goes through, Bharti will be able to promptly launch 4G services in the main markets of Delhi and Mumbai. It must be noted that 4G services require broadband airwaves. With 4G, users can access internet at a much faster speed than that by 3G. Bharti has already launched its 4G services in Kolkata