The major Asian stock markets have opened the day on a negative note with market in China and Hong kong down 3.3% and 0.9% respectively. The European and US indices ended their previous session on a disappointing note too. The rupee is trading at 65.39 per US dollar.
Indian stock markets have also opened in red amidst weak global cues. BSE-Sensex is trading down by 69 points (down 0.25%) and NSE-Nifty is trading down by 30 points (down 0.34%). However, the stocks in mid cap and small cap space have opened slightly higher. Both S&P BSE Midcap and S&P BSE Smallcap are trading up by 0.09% and 0.29% respectively. Sectoral indices have opened the day on a mixed note with stocks from telecommunication and metal space witnessing the maximum selling pressure. However stocks in the pharmaceutical and realty are top gainers in the pack.
Major stocks in the power space have opened their day in red. As per an article in a leading financial daily, Aam Admi Party has demanded an immediate tariff cut and criminal action against distribution arms of Anil Ambani and Tata Group companies. Reportedly, the statement comes after such findings in a leaked draft CAG report. As per this draft report these distribution companies (discoms), have inflated their cost by about Rs 80bn. The conflict has also pushed Delhi close to a blackout as discoms has defaulted in making payment to the power suppliers, who in turn had threatened to switch of the power supply.
Stocks in the automobile sector have opened their day on a negative note. Auto major Mahindra & Mahindra (M&M) has received shareholders' approval to raise up to Rs 50bn through issuance of securities on private placement basis in domestic and international markets. The company's shareholders have approved the resolution at its annual general meeting (AGM). The company intends to use these funds for ongoing capital expenditure, short and long term working capital and for general corporate purposes. The stock of M&M is trading down by 0.8%.