The major Asian stock markets have opened the day in red. Stock markets in China and Japan are down 1.07% and 1.9% respectively. The major stock indices in the European and US markets ended their previous session on a weak note. The rupee is trading at 66.40 per US dollar.
Indian stock markets have too opened the day on a quite disappointing note. BSE-Sensex is trading down by 236 points (down 0.9%) and NSE-Nifty is trading down by 66 points (down 0.8%). Both S&P BSE Midcap and S&P BSE Smallcap is trading down by 0.8% and 0.6% respectively. Sectoral indices have opened the day on a mixed note with stocks from metals and banking sector witnessing selling pressure.
Stocks in the banking sector have opened their day weak note. As per an article in Livemint, two large banks announced reductions in their minimum lending rate. HDFC Bank India's second largest private bank cut its minimum lending rate by 35 basis point to 9.35%. And Canara Bank, the fifth largest public sector bank by assets also decided to cut its minimum lending rate by 10 basis points to 9.9% effective from Thursday. This is one of the steepest stand-alone rate cuts by HDFC Bank and means that the bank now has the lowest base rate among all lenders. HDFC Bank has now reduced its base rate by a total of 65 basis points in 2015 in response to a 75 basis point in policy rate cut by Reserve Bank of India over the same period. Stock of HDFC is trading down by 2.2%.
Major stocks in the power sector have opened their day in green. As per an articles in Livemint, Piyush Goyal- minister of power, coal and renewable energy said that India has a $250 billion investment opportunity in the renewable energy space. India plans to have 100,000 megawatts (MW) of solar energy capacity by 2022. Renewable energy currently accounts for 13% of the total installed capacity of power generation. Speaking at the event, Goyal said that in the next two to three years, India will not be dependent on coal imports except for coking coal. The Indian coal sector with one of the five highest reserves in the world, imports coal worth $20 billion a year. India is the world's biggest greenhouse gas emitter after the US and China. The emphasis on solar and wind power is also expected to strengthen its standing at global climate change negotiations that will culminate in a summit in Paris in December.