Barring Singapore (down 0.1%), all Asian stock markets have opened the day on a positive note with Japan (up 0.3%), Indonesia (up 0.6%) and South Korea (up 0.8%) leading the gains. The Indian share markets indices have opened the day on a flat note. The sectoral indices have opened mixed with stocks in the software and realty sector leading the gains. However, stocks in the consumer durables and healthcare space are facing maximum selling pressure.
The Sensex today is down by around 2 points, while the NSE-Nifty is down by around 6 points (0.1%). However, mid and small cap stocks have opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% each. The rupee is trading at Rs 54.89 to the US dollar.
Energy stocks have opened the day on a mixed note with Jindal Drill Ltd and Chennai Petroleum Corporation Ltd (CPCL) leading the gains. However, Gas Authority of India Ltd (GAIL) and Reliance Industries Ltd (RIL) have opened in the red. As per a leading financial daily, Oil & Natural Gas Corporation (ONGC) has received the clearance for its term of references (ToR) from the experts appraisal committee of the ministry of environment and forests (MoEF). The approval is for the 2,200 MW gas based project in Maharashtra. The project will require an investment worth Rs 99 bn. This will be the second gas based project proposed by ONGC after its 726 MW Tripura which is up and running. ONGC has indicated the assured gas supply from C-24 field and B-12 fields in Tapti Daman Block of Western Offshore Basin for the upcoming plant.
Auto stocks have opened the day mainly in red with Maharashtra Scooters and Force Motors Ltd leading the losses. Bajaj Auto Ltd has announced its financial results for the fourth quarter of the financial year 2013 (4QFY13). The net sales for the quarter were up by 3% on a year on year (YoY) basis. The operating margins during the quarter slipped to 17.6% from 20 .7% in the corresponding quarter last year. The margins were down mainly due to mainly due to the adverse product-mix and increase in other expenditure. The company has reported a 0.77% YoY decline in the bottomline for the quarter. This was mainly on account of weak demand and adverse product mix. However, the overall decline was limited to some extent by a higher contribution of other income that grew by 74 % YoY. The management has suggested that it does not see any growth in volumes in the short term.