Most of the major Asian stock markets have opened on a firm note on the back of bright US jobs data that suggests improving economic momentum. The stock markets in Japan (up 0.5%) and Hong Kong (up 0.7%) were leading the gains. However, stock markets in Indonesia (down 0.4%) and Korea (down 0.1%) have opened in the red.
The Indian share markets have opened the day on a firm note. All sectoral indices have opened on a positive note with the stocks in the realty and consumer durables sector leading the gains.
Steel stocks have opened the day mainly in the green with Tayo Rolls Ltd and Maharashtra Seamless Ltd leading the gains. However, Tata Sponge Ltd and Jindal SAW Ltd have opened in the red. As per a leading financial daily, Steel Authority of India Ltd (SAIL) is close to completing a Rs 120 bn expansion plan (from 2 million tonnes to 4.5 million tonnes per annum) at its steel plant at Rourkela, Odhisha. Further, the firm is planning to more than double the capacity at the facility in the next phase, expanding it to 10.8 million tonnes per annum (MTPA). By 2025, the company aims to attain a capacity of 50 MT. As per the management, some of the schemes under this expansion plan, such as 3 MTPA hot strip mill and the beneficiation and pelletisation plant have already been tendered out.
Engineering stocks have opened the day mainly in the green with Emco Ltd and Blue Star Ltd leading the gains. As per a leading financial daily, Crompton Greaves Ltd (CG) has bagged Rs 2.4 bn contract with Spanish multinational electric utility company Iberdrola. The contract is to supply over 1 million ZIV single smart meters in a year. The order comprises single-phase and three-phase meters. It is important to note her that the regulatory framework in Spain makes it mandatory that 70 %of the analog meters are replaced by 2016 and 100 %by 2018. This will be a significant advantage for the company.