Asian stock markets have opened the day on a mixed note with stock markets in Malaysia (down 0.5%) and Indonesia (down 0.3%) leading the losses. However, markets in Hong Kong (up 0.5%) and South Korea (up 0.5%) are trading firm. The Indian stock markets have also opened the day on a firm note. Stocks in the metal, auto and power space are leading the gains.
The BSE-Sensex is up by 83 points (0.5%), while the NSE-Nifty is up by around 26 points (0.5%). 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 52.56 to the US dollar.
Oil & gas stocks have opened the day on a firm with Gas Authority Of India Ltd. (GAIL) and Bharat Petroleum Corporation Ltd. (BPCL) leading the gains. However, Gujarat Gas Company Ltd and Reliance Industries Limited (RIL) are trading with marginal losses. Gujarat Gas has announced the financial results for the quarter ended March 2012.The company has registered a 10% year-on-year (YoY) decline in the bottomline. The total revenues were up 39.7% YoY. The profits declined due to an increase in the cost of imported Liquefied Natural Gas (LNG) and depreciating rupee. The company plans to increase exposure to high value segments and optimise its gas sourcing portfolio in the long term in the wake of rising gas costs.
Private sector bank stocks have opened the day on a firm note with Dhanlaxmi bank, Development Credit Bank (DCB) and Federal Bank leading the pack of gainers. As per the recommendations of the parliamentary standing committee, the Union Cabinet has allowed the cap on voting rights of shareholders in private sector banks to 26%. Currently, the voting right is restricted at 10%. However, the approval of the Reserve Bank of India (RBI) will be mandatory for buying equity stake of more than 5%. It must be noted that the amendments are part of changes approved by the Union Cabinet in the proposed Banking Laws (Amendment) Bill. The bill was put forth before the Lok Sabha in March 2011.