Barring South Korea (down 0.1%), all major Asian stock markets have opened the day on a firm note with Hong Kong (up 1.5%), Taiwan (up 1.5%) and Japan (up 1.4%) leading the gains. The Indian share markets indices have also opened the day on a firm note. Stocks in the FMCG and realty space are leading the gains.
The Sensex today is up by around 218 points (1.1%), while the NSE-Nifty is up by around 63 points (1.1%). Mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 1% and 0.8% respectively. The rupee is trading at Rs 60.10 to the US dollar.
FMCG stocks have opened the day on a firm note with Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Paper Products leading the gains. Anglo Dutch firm Unilever, the parent firm of Indian FMCG firm HUL recently launched its open offer at Rs 600 per share in order to raise its stake in the Indian subsidiary from 52.5% to 75%. As per a leading financial daily, Unilever's shareholding in HUL is likely to rise to 67.3% owing to the fact that its open offer achieved a success rate of about 66%. Against the offer to buy 487 million shares, over 320 million shares were tendered by existing shareholders of HUL. Unilever's share purchase is likely to result in inflows of about US$ 3.2 bn (approximately Rs 192.2 bn). As per Economic times, it is believed that Life Insurance Corporation has sold a substantial chunk of its stake in the open offer.
Mining stocks have opened the day on a firm note with Sesa Goa Ltd, Nation Mineral Development Corporation (NMDC) and Ashapura Minechem leading the gains. As per a leading financial daily, the coal ministry has given a go-ahead to Coal India Ltd (CIL) inking fuel-supply agreements (FSAs) for 11 power plants. These 11 projects have a combined capacity to generate 10,400 megawatts (MW) of electricity. Given that India's power sector had been mired in a series of roadblocks, this is likely to provide some relief. It must be noted that these projects, entailing an investment of about Rs 530 bn, were stalled for the last four years owing to lack of fuel-supply agreements. It is said that CIL will sign FSAs for these projects by August 2013. The developers of these power projects include the Jaypee Group, GMR Infrastructure, Avantha Power, Adani Group, Lanco and DB Power.