The major Asian stock markets have opened the day on a mixed note with stock markets in Indonesia (up 1.0%) and Korea (up 0.4%) leading the gains. However, the stock markets in China (down 0.2%) and Hong Kong (down 1.8%) have opened in the red. The rupee is currently trading at Rs 63.60 to the dollar.
Mining stocks have opened mixed with Gujarat NRE Coke and Hindustan Zinc Ltd leading the gains. However, Coal India Ltd and Ashapura Minechem Ltd were facing selling pressure. As per a leading financial daily, the state run companies Steel Authority of India Limited (SAIL) and National Mineral Development Corporation (NMDC) would set up an ultra mega steel plant (UMSP) in Chhattisgarh's Bastar region. The plant will have a capacity of 3 million tonne per annum and would entail an investment of Rs 180 bn. As per Chhattisgarh's industry secretary Subodh Kumar Singh, two special purpose vehicles (SPVs) would be set up - one for the project and another for the mining. SAIL would have equity of 74% in the project SPV, while NMDC would hold remaining 26%. In the mining SPV, Chhattisgarh Mineral Development Corporation (CMDC) would hold 49% equity, while NMDC and SAIL would share 26% and 25% respectively. There will be an agreement between both the SPVs to facilitate iron-ore supply for the plant from the mines owned by the CMDC. The state government would assist in land acquisition and clearances apart from mining lease for the project.
Cement stocks have opened mainly in the red with Mangalam Cement Ltd and The Ramco Cement leading the losses. Mangalam Cement has announced results for the quarter and the year ended March 2015. The company has reported a decline of around 64.9% in the net profit on a year on year (YoY) basis during the quarter. The net sales for the quarter grew by 9.3% YoY. The operating profit margin at the end of the year stood at around 7%. The company has recommended a dividend of Rs 2 per share for FY15. The company's debt at the end of the year stood at Rs 3.5 bn, with debt to equity ratio at 0.7 times. For FY15, the net sales grew by around 32% YoY, while net profit was down 39% YoY.