Asian stock markets have opened the day on a mixed note with stock markets in Japan (up 1.4%) and Indonesia (up 0.4%) leading the gains. However, markets in South Korea (0.8%) and Taiwan (0.7%) are trading in the red. The Indian share markets have opened the day on a positive note. The sectoral indices have opened on a mixed note with the healthcare and consumer durables indices leading the gains. However, IT and metal indices are trading weak.
Auto sector stocks have mainly opened the day in the green with TVS Motor Company and Hero MotoCorp leading the gains. After witnessing sluggish demand for two years, India's car market has shown a good revival in FY15 with four consecutive months of strong sales growth. As per a leading financial daily, India's leading passenger vehicle maker Maruti Suzuki reported strong growth of 29% YoY during the month of August 2014 with sales of 98,304 units. Japanese car maker Honda Motor registered the highest growth rate of 88% YoY with sales of 16,758 units. Maruti's close rival Hyundai Motors reported 19% YoY growth during the month. Change in government at the Centre, stable fuel prices as well as interest rates have helped improve consumer sentiment. Auto makers are now aiming for a slew of new launches to boost sales during the upcoming festive season.
Oil and gas stocks have mainly opened the day on a firm note with Indraprastha Gas Ltd (IGL) and Castrol India leading the gains. As per a leading financial daily, the retail price of diesel is almost close to the market rate. The difference between the retail price and the global benchmark price is just a meagre 8 paise per litre. The decline in the under-recoveries has been aided by softening international crude oil prices as well as regular monthly price increases. It is said that if the trend continues, retail diesel prices will be at par with international rates in about a week. It is worth noting that diesel prices have been raised every month by up to 50 paise per litre since January 2013. The cumulative rise has been Rs 11.81 per litre in 19 instalments.