The major Asian stock markets have opened on a mixed note with stock markets in Japan (down 0.5%) and Singapore (down 0.4%) leading the losses. However, stock markets in Hong Kong (up 0.4%) and Korea (up 0.7%) have opened in the green.
Mining stocks have opened the day mainly in the red with Gujarat NRE Coke Ltd and Manganese Ore (India) Ltd leading the losses. The Government is likely to pursue reformsin the coal sector by allowing private firms to mine and sell the coal. It is important to note here many companies are forced to import the fuel despite the huge reserves of coal in India. While India has an estimated coal reserves of over 250 billion tonnes, Coal India that produces around 85% of the fuel mined in the country, is not able to exploit the same due to capacity and technical constraints. Currently, the private firms are allowed to mine coal only for captive use and are barred from selling the same in the open market.
Auto stocks have opened the day mainly in the red with Ashok Leyland Ltd and Escorts Ltd leading the losses. As per a leading financial daily, Tata Motors Ltd is working on a new small car, codenamed 'Kite'. The same is likely to compete with brands such as the Maruti Celerio and Ford's new Figo. The new car, placed between Nano and Indica, is likely to be launched in late 2015 and will be rolled out from the company's Sanand plant in Gujarat. Out of the installed 2, 50,000 cars per annum at Sanand, the new product is expected to consume 1, 50, 000 units a year. The new launch is likely to help the company strengthen its position in the compact car segment that accounts for 30% of the total passenger cars sold in India.