Asian stock markets have opened on a mixed note with China (down 0.5%), Indonesia (down 0.3%) and South Korea (down 0.1%) leading the losses, while markets in Japan (up 1.6%) and Hong Kong (up 0.3%) are trading in the green.
PSU bank stocks have opened the day on a firm note with Dena Bank and Vijaya Bank leading the gains. As per credit rating agency ICRA, the asset quality of India's public sector banks is expected to continue witnessing stress in the current fiscal. The gross non-performing assets (NPA) of public sector banks stood at 4.4% at the end of March 2014. By March 2015, gross NPA levels are expected to be in the range of 4.4-4.7%. As of year ended March 2014, the tier-I capital of public sector banks stood at 8.6% as against the required 6.5% level. For the entire banking system, gross NPA levels stood at 3.9% as of year ended March 2014.
Energy stocks have opened the day on a mixed note with Chennai Petroleum and Indraprastha Gas leading the gains. However, Oil and Natural Gas Corporation (ONGC) and Gujarat Gas have opened in the red. As per a leading financial daily, Mukesh Ambani controlled Reliance Industries is set to implement projects with an investment of Rs 1.8 trillion in the next three years. The results of these investments would be visible FY17 onwards. The company is aiming to be among the world's top 50 companies, emerging as a major player in telecom and retail in addition to its traditional business of oil exploration and refining & petrochemicals. The company's new initiatives include the launch of broadband services in a phased manner in 2015. The investment for this initiative is pegged at Rs 700 bn. The company is also planning to expand its retail business where it sees huge potential for growth. For these investments, the company plans to raise loans which would take its net debt level to Rs 600 bn over the next couple of years, a huge jump from a net debt level of Rs 17.8 bn as of March 2014. However, the company expects to be debt-free by the end of financial year 2017-18.