The major Asian stock markets have opened on a weak note on concerns of spread of insurgency in Iraq and its impact on oil price. The stock markets in Japan (down 1.0%) and Indonesia (down 0.3%) were leading the losses.
Telecom stocks have opened the day mainly in the red with Himachal Futuristic Ltd and Mahanagar Telephone Nigam Ltd (MTNL) leading the losses. However, Idea Cellular Ltd and Tata Communications Ltd have opened in the green.The Reserve Bank of India, as per its recent release has allowed foreign institutional investors (FIIs) to purchase up to 49% of the paid up capital of Idea Cellular Ltd under the Portfolio Investment Scheme (PIS), through primary market and stock exchanges. Earlier, the FII limit in the company was 24%. The decision follows passage of a resolution by the board of directors and a special resolution by the shareholders for increasing the limit from 24% to 49%. As per the data available on the Mumbai Stock Exchange (BSE), FIIs held 19.51% share in the company as of the quarter ended March 2014.
Energy stocks have opened the day mainly in the red with Petronet LNG Ltd and Mangalore Refinery and Petrochemicals Ltd leading the losses. However, GAIL (India) Ltd and Cairn India Ltd have opened in the green. As per a leading financial daily, GAIL (India) Ltd will bring down itsequity stake in Oil and Natural Gas Corporation Ltd (ONGC)mega petrochem project at Dahej to 11.6 %. In 2008-2009, GAIL had picked up 19 % stake in ONGC's Petro-additions Ltd (OPaL), which is building a mega petrochemical complex at Dahej in Gujarat.At that time, the plant with a capacity of 1.1 million tonnes (MT) was estimated to cost Rs 124.4 bn. However, it is facing major cost over run. Since then, the cost of the project has been revised thrice upwards and the cost is now estimated at Rs 214 bn. Initially, GAIL had decided to invest upto Rs 10 bn , that got it 19% stake in the project. However, now that the project cost and promoters' contribution has run up, GAIL has decided to keep the investment capped at Rs 10 bncrore and so its stake in the project will come down.