The Asian stock markets have opened the day in red with stock markets in Hong Kong (down 1.3%), South Korea (down 1.5%) and Singapore (down 1.0%) leading the losses in the region. The Indian share market indices have opened the day on a negative note. Barring pharma, all sectoral indices have opened in the red with stocks in metal and capital goods sector leading the pack of losers.
The Sensex today is down around 65 points (0.4%), while the NSE-Nifty is down by around 20 points (0.4%). Both mid stocks and small cap stocks have opened in the red with the BSE Mid Cap index and BSE Small Cap Index down by around 0.4% and 0.1% respectively. The rupee is trading at Rs 55.72 to the US dollar.
The stocks in the Engineering sector have opened on a mixed note with Blue Star and Ingersoll Rand leading the pack of gainers while Voltamp Tranformers Ltd and Elgi Equipments are witnessing losses. As per a leading financial daily, Larsen & Toubro Ltd's (L&T) management has given guidance of a 30% growth in new orders from the hydrocarbon sector this fiscal. The company expects to secure Rs 100 bn of orders from upstream, mid and downstream companies and even fertilizer companies in FY13 as compared with over Rs 70 bn worth of orders it received from the sector in FY12. As per the management, the company is pre-qualified for significant projects in India and abroad. It is to be noted that while business from the hydrocarbon sector accounts for only 10% of the Rs 710 bn L&T's business, order wins from the segment will be crucial for the company as the other sectors which it does business with (such as power and infrastructure) continue to see muted capital expenditure and order delays. The company also expects expansion in business in Middle East to yield results this year.
Most of the stocks in the Energy sector have opened in red led by Essar Oil and Hindustan Petroleum Corporation Ltd. (HPCL). However, Oil and Natural Gas Corporation (ONGC) and Castrol have opened on a positive note. As per a leading financial daily, HPCL has increased the prices of compressed natural gas (CNG) in Ahmedabad by Rs 3.90 per kg. The company will now be will be selling CNG now at Rs 56.90 per kg. HPCL operates with a network of 22 gas stations in the city. As per the company, the increase in the gas cost is main reason behind price hike. The company had last hiked the CNG prices in Mid May this year by around Rs 2.80 per kg, taking the gas price from Rs 50.22 per kg to Rs 53 per kg.