All the major Asian stock markets have opened the day in the red with Hong Kong (down 1.2 %) and China (down 3.8%) leading the pack of losers. However, the Indian share market indices have opened the day on a positive note. The sectoral indices have opened on a mixed note with stocks in the oil and gas and realty sector leading the gains. However, the stocks in the FMCG and consumer durables were witnessing selling pressure.
The Sensex today is up by around 50 points (0.3%), while the NSE-Nifty is up by around 14 points (0.3%). However, mid cap stocks have opened in the red with BSE Mid Cap index down by around 0.2%. The small cap stocks have opened in the green with BSE Small Cap up by around 0.2%. The rupee is trading at Rs 59.70 to the US dollar.
Mining stocks have opened the day on a mixed note with Sesa Goa Ltd and Coal India Ltd leading the gains. However, Metals and Minerals Trading Corporation of India Ltd. (MMTC) and National Mineral Development Corporation (NMDC) were witnessing selling pressure. As per a leading financial daily, five national unions representing the interests of about 3.5 lakh workers of Coal India Ltd (CIL) have postponed their proposed strike. The unions have decided to approach the coal ministry with their concerns about the proposed 10% stake sale and restructuring in the PSU. Earlier, a three day strike was proposed in the month of September. However, now the unions will approach the Government first for negotiation. In case the Government does not take into consideration their views against the divestment, they are planning to go ahead with the strike.
Steel stocks have opened on a mixed note with Steel Authority of India Ltd and Adhunik Metaliks leading the losses. However, Tayo Rolls and Jindal SAW Ltd are leading the losses. As per a leading financial daily, Tata Steel is considering selling its stake in various group companies including Tata Motors. It is to be noted here that the company is facing tough times due to a high debt load and declining steel prices. As such, it is hoping to raise Rs 72 bn through the stake sale. Tata Steel owns 5.6 % in Tata Motors, worth Rs 50 bn at on Monday's closing price, apart from stake in other Tata Group companies. Tata Steel might sell these stakes to its parent company, Tata Sons. With the help of funds so raised, it intends to expand in Orissa and repay high cost loans.