Following the global cues, the Indian market has once again opened in the red. The Sensex is down 46 points at 27,397 and the NSE-Nifty is down 16 points at 8,308. BSE Mid Cap and BSE Small Cap have opened on a flat note. Majority of the sectoral indices are trading in the red with oil & gas, power and consumer durables sectors witnessing maximum selling pressure.
Asian stock markets are trading on a weak note following cues from weak US and European markets as investors have been alarmed by sell-off in sovereign bonds globally. The rupee has opened with a marginal loss at Rs 63.51 to the dollar.
According to a leading financial daily, Apollo Tyres is planning to invest around Rs 15 bn to expand its truck-bus radial tyres capacity at its plant in Chennai to 9,000 units a day. The plant manufactures 16,000 passenger car tyres in a month and capacity utilization is around 80%. So far, the plant has attracted investment to the tune of Rs 21 bn. The Chennai facility, along with the Baroda plant, exports around 100,000 tyres in a month. The company also exports truck-bus radial at about 15,000 units a month. Reportedly, the company is also investing Rs 4-5 bn to expand its off-highway tyres manufacturing capacity in Kerala. Also, the company is now gearing up to set up a legal entity in Malaysia.
Engineering stocks have opened on a mixed note with ABB India Ltd and BEML Ltd being the leading gainers. Shares of Larsen and Turbo opened in green (up 2%) after it was reported that the engineering major has made a renewed bid to secure mining rights over Sijimali and Kutrumali bauxite deposits across Kalahandi and Rayagada districts. Both Kutrumali and Sijimali have combined reserve of 300 million tonne of bauxite. Reportedly, the state government is yet to take a decision on grant of mining lease to L&T over the bauxite mines.