Asian stock markets have opened the day on a mixed note with stock markets in Malaysia (down 0.4%) and South Korea (down 0.2%) leading the losses in the region. However, markets in Japan (0.9%) and Singapore (up 0.2%) are trading firm. The Indian share market indices have opened the day on a firm note. Stocks in the power, capital goods and metal space are leading the pack of gainers.
The Sensex today is up by around 33 points (0.2%), while the NSE-Nifty is up by around 9 points (0.2%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.5% each. The rupee is trading at Rs 56.98 to the US dollar.
Auto stocks have opened the day on a mixed note with Tata Motors and Hero MotoCorp trading in the red. However, Mahindra & Mahindra (M&M) and Ashok Leyland are trading firm. India's leading commercial vehicle manufacturer, Tata Motors, is planning to suspend production at one of its plants for three days this week. Production at the Jamshedpur factory, where the company makes trucks and truck parts, will be shut down from June 28 to June 30. The shutdown has been planned in order to align production with demand. Earlier during the month, the company had shut down its Pune plant for three days. This is another indication of slowing growth prospects of the auto industry. It must be noted that India's manufacturing output, which is the main driver of commercial vehicle demand, declined by 0.3% during the January-March 2012 quarter.
Mining stocks have opened the day on a firm note with Sesa Goa Ltd, Gujarat NRE Coke, Manganese Ore (India) Limited (MOIL) and Coal India Ltd (CIL) leading the gains. As per a leading financial daily, the Prime Minister's Office (PMO) has directed the Coal Ministry to speed up the process of taking back coal blocks from private companies that have not developed them and giving the deallocated coal mines to India's mining giant CIL. In addition, the PMO has asked CIL to appoint mine developers and operators (MDOs) to commence production from these deallocated coal blocks without much delay. It must be noted that several private companies which had been allocated coal blocks for captive use had delayed the development of the allotted blocks. The government had issued show-cause notices to 58 coal block allottees that had delayed the development of the coal blocks and warned them of cancellation of mines if no explanation was given in 20 days.