Indian share markets open flat

Mon, 27 Aug 09:30 am

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The key Asian stock markets have opened the day on a mixed note with stock markets in China (down 1.3%), Hong Kong (down 0.1%) and South Korea (down 0.2%) leading the losses in the region. However, the stock markets in Japan (up 0.3%) and Malaysia (up 0.1%) have opened in green.

The Indian share market indices have opened the day on a flat note. The sectoral indices are trading mixed with stocks in banking and capital goods sector leading the losses while energy and auto stocks have witnessed maximum gains.

The Sensex today is up by around 8 points (0.1%), while the NSE-Nifty is up by around 1 point. Mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.2% and 0.3% respectively. The rupee is trading at Rs 55.55 to the US dollar.

Oil and gas stocks have mainly opened the day on a positive note with Mangalore Refineries and Petrochemicals Ltd (MRPL) and Reliance Industries Ltd (RIL) leading the pack of gainers. However, Bharat Petroleum Corporation Ltd (BPCL) and Oil and Natural Gas Corporation Ltd (ONGC) have opened weak. As per a leading financial daily, the leading Energy sector companies like Reliance Industries Ltd (RIL), Oil and Natural Gas Corporation (ONGC) and Gas Authority of India Ltd (GAIL) are eyeing stake in liquefied natural gas (LNG) terminals on the east coast of the US for shipping gas to India. As per industry sources, one such deal could be finalized before year-end.

The cost of shipping gas to India is estimated at about US$9.5 per million metric British thermal unit (mmBtu). At this rate, the gas will be will be over 50% cheaper than current imports. It is to be noted here that US is a gas surplus market owing to huge shale gas discoveries and the work on converting LNG complexes from regasification to liquefaction (import to export) terminals is already underway.

The stocks in the Engineering sector have opened on a mixed note with Opto Circuits and Lakshmi Machines leading the gainers while Sanghvi Movers and Jyoti Structures have opened weak. As per a leading financial daily, Larsen & Toubro Ltd. (L&T) is planning to shut down its switchgear unit in China. The company has decided to exit on account of low growth and stringent competition from local low-cost Chinese producers. The exit plans are awaiting Chinese Government clearance currently. The company had forayed into the switchgear space in China in 2006.It was the company's first manufacturing facility in the electrical sector outside India. The sale of the circuit breaker business is expected to be line with company's plan to focus on core businesses and sell small ones to unlock value.