Barring Indonesia (down 1.2%), all major Asian equity markets have opened the day in the green with Japan (up 3.4%) and Taiwan (up 1.2%) leading the gains. The Indian share market indices have also opened the day on a firm note. The stocks in the realty and banking space are leading the gains. However, consumer durables stocks are trading weak.
The Sensex today is up by around 84 points (0.4%), while the NSE-Nifty is up by around 31 points (0.5%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.5% and 04% respectively. The rupee is trading at Rs 57.05 to the US dollar.
Energy stocks have opened on a firm note with Chennai Petroleum, Petronet LNG and Oil and Natural Gas Corporation Ltd (ONGC) leading the gains. As per a leading financial daily, the phased deregulation of diesel prices in India could result into realignment in business of ONGC, Mangalore Refinery and Petrochemicals Ltd (MRPL) and Shell India. It must be noted that when fuel retailing was opened up in 2002, these three companies had got authorisations to set up retail fuel outlets in the country. ONGC is exploring the possibility of a tie-up with Shell India either on its own or through its subsidiary MRPL. Currently, MRPL operates a few retail fuel outlets. Apart from retailing, ONGC and Shell are also considering the possibility of collaboration across the entire value chain of the oil & gas business.
Auto stocks have opened the day on a firm note with TVS Motor Company, Mahindra & Mahindra (M&M) and Escorts leading the gains. As per a leading financial daily, India's leading passenger vehicle manufacturer Maruti Suzuki is set to go ahead with its expansion plans despite the slowdown in the demand for cars. It plans to venture into the light commercial vehicles market. Moreover, the Japanese parent wants the carmaker to develop the export markets in the Middle East, Africa and Southeast Asia. Both these initiatives will require additional capacities. As per the daily, the company's third manufacturing line at Manesar plant with a capacity to assemble 2.5 lakh units will be ready by September 2013. Moreover, its Gujarat plant is expected to go on stream by 2015 end or early 2016.