Indian share markets open firm

Tue, 22 Apr 09:30 am

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The major Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 0.3%) and Singapore (up 0.4%) leading the gains. However, the stock markets in Hong Kong (down 0.2%) and Indonesia (down 0.5%) were leading the losses. The Indian share markets have opened the day on a positive note. The sectoral indices have opened mixed with stocks in the realty and capital goods sector leading the gains. However, the stocks in the auto and metal sector were leading the losses.

The Sensex today is up by around 34 points (0.2%), while the NSE-Nifty is up by about 7 points (0.1%). The midcap and smallcap stocks have also opened in the green with BSE Mid Cap and BSE Small Cap indices up by around 0.5% and 0.6% respectively. The rupee is currently trading at Rs 60.75 to the US dollar.

Energy stocks have opened the day on a mixed note with Petronet LNG Ltd and Jindal Drill Ltd leading the gains. However, Gujarat Gas Ltd and Essar Oil Ltd were facing selling pressure. As per a leading financial daily, GAIL India's natural gas pipeline project has suffered a setback. Some farmers' organizations are against the laying of the pipeline through farmlands. Regarding the matter, the Tamil Nadu Government has maintained that the pipelines be laid along the national highway, which is not acceptable to GAIL. The matter is now pending before the Supreme Court. However, the company has cancelled contracts given to some entities for the execution of the work at various stretches in Tamil Nadu. The development will have an adverse impact on Petronet LNG Limited which has set up a re-gasification plant of 5 MMTPA (million metric tonne per annum) capacity at Kochi. The terminal is facing problems due to low capacity utilization. Currently, the capacity utilization at the terminal is less than 10%.

Auto stocks were trading mixed with Force Motors Ltd and TVS Motors Ltd leading the losses. However, Eicher Motors Ltd and Tube Investments Ltd were leading the gains. As per a leading financial daily, Hero MotoCorp Ltd is expanding its manufacturing operations to new regions. The company has plans to set up a manufacturing plant each in Colombia and Bangladesh. The overall investment is estimated to be more than US$150 m. This includes investment on building its brand. The company has completed all formalities for setting up a manufacturing plant in Colombia. Currently, it is in the process of incorporating a subsidiary in that country. For expansion in Bangladesh, it is likely to consider a joint venture plant. Also, it is planning to expand operations in Latin America.