Indian stock markets open weak

Fri, 4 May 09:30 am

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Asian stock markets have opened the day on a mixed note. Markets in Hong Kong (down 0.7%) and South Korea (down 0.5%) are leading the losses in the region. However, markets in Taiwan (up 0.4%), Malaysia (up 0.4%) and Japan (up 0.3%) are witnessing buying interest. The Indian stock markets have opened the day on a negative note. Stocks in the capital goods, banking and realty sectors are witnessing maximum losses.

The BSE-Sensex is down by around 48 points (0.3%), while the NSE-Nifty is down by around 16 points (0.3%). Mid and small cap stocks are trading in the red as well with the BSE Mid cap and BSE Small cap indices down by around 0.3% and 0.1% respectively. The rupee is trading at Rs 53.69 to the US dollar.

Engineering stocks have opened the day on a weak note with Larsen & Toubro (L&T), Alstom Projects, Punj Lloyd and Bharat Heavy Electricals Ltd (BHEL) trading in the red. Engineering and construction giant L&T has recently announced that during the financial year 2011-12 (FY12), it filed 162 patent applications for its electrical and automation products. The company also filed 10 international patent applications through patent cooperation treaty. In addition to patents, L&T also filed 16 trademark applications, 10 design registrations and 9 copyrights during the year. As per Mr S C Bhargava, Senior Vice President and Head of electrical and automation division, the company was able to do so on account of continuous improvement in processes and investment in research and development. He further pointed out that the main purpose behind patent applications is to retain competitive advantage, to remain environmental friendly and to assure greater safety and value to customers. It must be noted that between 1999-2000 and 2011-12, L&T's electrical and automation division has filed 856 patent applications, 256 design registrations, 110 trademark applications and 20 copyright applications.

Oil and gas stocks have opened the day on a weak note with GAIL India, Indian Oil Corporation (IOC) and Petronet LNG leading the losses. However, Oil & Natural Gas Corporation (ONGC) and Cairn India are trading in the green. It is reported that oil major ONGC and Cairn India have sought permission for starting new exploration activities in Rajasthan. The companies intend to invest about US$ 1 bn towards exploration activities and around US$ 5 bn towards development capital.

A leading business daily has further reported that ONGC has taken up a major exploring campaign in which it is operating three major NELP blocks in Chambal Valley, Rajasthan. These blocks, which are situated in the districts of Kota, Bhilwara and Baran, were awarded to the company by the Government of India. It is reported that exploration activities are currently underway in these regions and they comprise a massive seismic survey campaign which would be followed by drilling of exploratory wells. In addition to this, the company also has 30% participating interest and holds the required license in a block at Barmer Basin. The same is believed to be the largest onshore discovery in India in recent times.