The major Asian stock markets have opened the day on negative note, as China devalues its currency. The stock markets in Hong Kong market (down 1.74%) , Japan market (down 1.60%) and Singapore market (down 2.65%) are the leading losers in the pack. European and US stock markets too closed their session in red yesterday. The rupee is trading at 64.72 per US dollar.
Major stocks in the automobile space have opened their day in red. As per an article in Business Standard, the production target of Maruti Suzuki could be affected due to delays in getting approvals for a new manufacturing plant in Gujarat. Suzuki Japan is fully financing the investment in Gujarat. The cars produced at the Gujarat plant will be later sold to Maruti Suzuki at cost price. This move has already been opposed by the minority shareholders as they feel that it would reduce the Indian firm to a mere marketing and sales company in the long run. If the minority shareholders votes against the resolution, it could lead to further delays in the project. The company has ramped up its production in the recently commissioned Manesar Plant-C while the production from the Gurgoan facility has remained at a similar level to that of the previous years. Stock of Maruti Suzuki is trading down by 0.40%.
Stocks in the banking sector have opened their day in red. As per an article in a financial daily, the country's largest lender State Bank of India (SBI) has reported a 10.25% growth in the net profit at Rs 36.92bn for the quarter ended June 30. The growth in the profit comes on the back of non-interest income and a gain in the treasury profits. The gross Non Performing Asset (NPA) stood at Rs 564bn as of June end, which is 4.29% of the gross advances as compared to 4.95% a year ago. Net Interest Margin came down to 3.29% compared to 3.54% a year ago. As on June 30, the credit growth was a mere 6.6% while deposit growth stood at 13.7%.Stock of SBI is trading down by 2.60%.