The major Asian stock markets have opened the day on a negative note with market in China (down 1.5%) and Indonesia down (down 1.1%) being the top losers in the pack. The major European indices ended their previous session in red, while US stock markets ended the day on a firm note. The rupee trading is closed today on account of Parsi New Year.
Major stocks in the automobile space have opened their day in green. As per an article in Business Standard Tata Motors is undergoing a makeover after losing market share to rivals over the years. It is looking for expansion of its distribution network. The company has a smaller presence in the hinterland than rivals Maruti Suzuki and Mahindra and Mahindra. The company intends to triple its outlets to nearly 1500 in three years. It is also investing in a doorstep service in areas where outlets may not be viable. As stated by president of the Tata Motors passenger vehicle business a wider distribution network will give confidence to the customers that there would be somebody to resolve the issue if anything goes wrong with the vehicle. Stock of Tata Motor is trading marginally down by 0.7%.
Stocks in the banking sector have opened their day on a mixed note. As per an article in a financial daily, the government has asked the state run banks to look for possible merger options before the proposed Bank Board Bureau (BBB) comes into existence. The BBB is portrayed as a new umbrella structure that will guide policy, functioning and appointments of the PSU banks. The finance ministry has asked the banks to see opportunities where synergy benefits exist and look at providing common services. BBB will engage with the banks and convince them about desirable merger and acquisition strategies which will help in better operations and growth of these banks. However if the banks are not able to pursue the proposals of this board, then the government may have to take a decision.