The Asian equity markets have opened the day on a mixed note with indices in China (down 0.5%), Taiwan (down 0.8%) and South Korea(down 0.4%) leading the losses in the region. However, markets in Singapore (up 0.4%) and Japan (0.1%) were trading in the green. The Indian equity market indices have opened the day on a positive note. Barring FMCG and power, all sectoral indices are trading in green with consumer durables and metal sector witnessing maximum gains.
The Sensex today is up by around 56 points (0.3%) and the NSE-Nifty is up by around 13 points (0.3%). Both Mid cap and Small Cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.4% and 0.3% respectively.
Energy stocks are trading mainly in the green with Gujarat State Petronet Ltd and Indraprastha Gas Ltd. leading the pack of gainers. As per a leading financial daily, Gas Authority of India Ltd. (GAIL) is in the final stages of signing a 20 year deal for importing 2 million tonnes (MT) of gas from US. The deal could be worth US$ 12 bn or more as suggested by the value of a pact that the company had signed in December 2011 with Sabine Pass Liquefaction for 3.5 MT of liquid gas a year (valued at US$ 20 bn). To reduce shipping costs of this project, Shipping Corporation of India (SCI) has also been involved. The reduced costs will thus be passed on to GAIL by way of a proportionate reduction in the gas prices. However, the project could face hurdles on account of US laws that bar energy exports to countries that are not its preferred trade partners. It is worth mentioning here that India does not have a free trade agreement (FTA) with US and is seeking a special waiver on gas exports from Washington.
Software stocks are trading mixed with Moser Baer India and CMC Ltd. leading the pack of gainers while Mphasis Ltd. and Oracle Financial Services are trading weak. As per a leading financial daily, Wipro Technologies Ltd. will be restructuring its telecom vertical to shift focus from product to service based revenues. The company will now concentrate more on areas like telecom analytics and mobile broadband. Earlier, the company's focus was on product engineering for telecom equipment vendors. The decision has come in wake of the decline in global spending from struggling telecom equipment vendors on Research and Development. As per the management, the services now comprise 25% of company's business while earlier the sales were entirely based on selling products.