The Asian equity markets have opened the week on a high note. Markets in Hong Kong (up 2.1%), Korea (up 1.6%) and Singapore (up 1.4%) are leading the gains in the region. The Indian equity markets have opened the day on a positive note as well. Stocks in the capital goods and metal space are witnessing maximum interest.
The Sensex today is up by around 157 points (0.9%), while the NSE-Nifty India is up by around 50 points (0.9%). Mid and small cap stocks are trading in the green as well with the BSE Mid cap and BSE Small cap indices up by around 0.9% each. The rupee is trading at Rs 55.13 to the US dollar.
Power stocks have opened the day on a positive note with Tata Power, JSW Energy and Adani Power leading the pack of gainers. The power companies that use imported coal as fuel have some reason to cheer. These companies would be allowed to raise tariffs by Rs 1 per unit. This would help offset some increase in costs that these companies have been facing due to additional taxes or change in laws of the sourcing countries. The power manufacturers have been asking for a tariff raise due to the rising costs of coal. The higher prices of coal was not just a problem for projects that were dependant on imported coal but also for those that were built assuming domestic supply. The reason for this is the erratic supply and shortfalls by Coal India.
Auto stocks have opened the day on a good note as well with Tata Motors, Bajaj Auto and Ashok Leyland leading the gains. The country's largest two-wheeler manufacturer, Hero Motocorp plans to launch the models under its own name two years ahead of schedule. The company would be re-launching its entire range under the 'Hero' brand name by the second quarter of the current financial year. The company ended its joint venture with Honda last year. However under the agreement, it could use the brand 'Hero Honda' till June 2014. But the company has decided to re-launch its own brand two years ahead of schedule. As per the company's management, it would be concentrating on becoming a global company with focus on markets that have large volumes. It is in the process of launching its products in international markets as well and has already identified partners for the same.