Barring China (down 0.2%), all major Asian stock markets have opened the day on a firm note with stock markets in Taiwan (up 1%) and Japan (up 1%) leading the gains. The Indian share markets have opened the day on a firm note. Barring the IT index, all sectoral indices are trading firm with capital goods and metal indices leading the gains.
Auto sector stocks have mainly opened the day on a firm note with Escorts and Eicher Motor leading the gains. As per a leading financial daily, the foreign direct investment (FDI) in the Indian automobile sector has declined sharply by about 85% year-on-year (YoY) during the April-May period of the current fiscal. As per data from the Department of Industrial Policy and Promotion (DIPP), FDI inflows declined from US$ 478 million during April-May 2013 to just about US$ 73 million during April-May 2014. It must be noted that the auto sector has been witnessing a major slowdown in demand over the last couple of years. During financial year 2013-14 (FY14), domestic car sales declined by 4.65% YoY.
Indian pharma stocks have opened the day on a firm note with Elder Pharma and J B Chemicals leading the gains. As per a leading financial daily, Hyderabad-based drug maker Aurobindo Pharma has nearly doubled its capital expenditure (capex) plan for the current financial year 2014-15 (FY15). While the total capex for FY14 was Rs 3.5 bn, the company has set forth a capex target of around Rs 6 bn for FY15. The company's capex plan, which includes maintenance capex as well, will be evenly spread out over active pharmaceutical ingredients (APIs) and formulations.