Asian stock markets have opened the day on a mixed note. Stock markets in South Korea (down 1%), Indonesia (down 0.2%) and Hong Kong (down 0.8%) are in the red whereas China (up 0.1%) and Japan (up 0.03%) are trading in the green. The Indian stock markets have opened the day on a weak note. Stocks in the auto and FMCG space are leading the losses. However, technology and healthcare stocks are trading marginally in the green.
The BSE-Sensex is trading lower by 54 points (0.3%) and the NSE-Nifty is down by around 15 points (0.3%). But Midcap and small cap stocks are trading in the green, with the BSE Midcap and BSE Small cap indices marginally up by 0.1% and 0.2% respectively. The rupee is trading at 44.76 to the US dollar.
Cement stocks have opened the day on a mixed note with ACC and Birla Corp trading in the red whereas Ambuja Cement and JK Lakshmi Cement are trading in the green. Cement leader, Ambuja Cements, a Holcim Group company, acquired 85 per cent stake in a company named Dang Cement Industries located in Nepal. The transaction was value at Rs 191.3 m. After the acquisition, Dang Cement has become a subsidiary of Ambuja Cements. The company has the option to further add a 5 per cent stake. Dang Cement also holds limestone mining lease in Nepal but the business activity on this front is not yet being carried out. With this acquisition, Ambuja Cements would be able to get a presence within Nepal. The annual cement demand in Nepal is about 3 million tones. Most of this is met through imports from India.
Auto stocks have opened the day on a weak note with Bajaj Auto and Maruti trading in the red. Two and three wheeler manufacturer Bajaj Auto explained the nitty-gritty of the passenger car platform it is building for Renault-Nissan. Rajiv Bajaj, managing director of Bajaj Auto said that this platform will have multiple uses and will be profitable even without the Renault-Nissan deal. The same car platform can also be used to manufacture 3-wheelers, vans and even commercial vehicles. So the cars produced would be an icing on the cake. The cars produced on this platform would be sold under the brand name, Renault-Nissan throughout the world. There have been fears that Bajaj may lose huge sums of money invested in the car production if the plan does not materialize.