Barring Indonesia (down 0.5%), the major Asian stock markets have opened the day on a firm note with Japan (up 1.2%) and Taiwan (up 0.9%) leading the gains. The Indian equity markets indices have also opened the day in the green. All sectoral indices have opened on a positive note with the stocks in the realty and power sector leading the gains.
The Sensex today is up by around 143 points (0.7%), while the NSE-Nifty is up by around 47 points (0.8%). Mid and small cap stocks have also opened in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.7% and 0.6% respectively. The rupee is trading at Rs 60.12 to the US dollar.
Auto stocks have opened the day on a mixed note with Bajaj Auto Ltd and Escorts Ltd leading the gains. However, Force Motors and Maruti Suzuki are witnessing losses. As per a leading financial daily, Maruti Suzuki Ltd is understood to have asked 200 contract workers to go on indefinite leave. This is because the company will be cutting down the production of diesel engines at its Manesar plant due to low demand. As such, the company has shut the third shift at its diesel engine plant at Manesar, that has an annual capacity of 3,00,000 units. The slowdown in the demand has impacted the overall sales volumes for the company. The company had reported 12.6 % YoY decline in total sales and 7.8% YoY decline in the domestic sales in the month of June.
Telecom stocks have opened the day mainly in green with AGC Networks and ADC India Communications Ltd leading the gains. As per a leading financial daily, the Government has put on hold the 'preferential market access' (PMA) policy for private telecom companies. The policy required telecom companies to source domestically manufactured electronic equipment within a certain timeline. Almost 37 international trade organizations complained that the policy is likely to distort the market. In response, the government has decided to review the policy. So now, the PMA policy will be recalibrated and submitted to the Cabinet. Nothing has been stated regarding the implementation of the policy for the government sector.