Barring China (up 0.3%), South Korea (up 0.3%) and Indonesia (up 0.1%), all major Asian stock markets have opened the day on a weak note with stock markets in Taiwan (down 0.5%), Japan (down 0.3%) and Hong Kong (down 0.3%) leading the losses. The Indian share markets have opened the day on a negative note. Barring FMCG and healthcare indices, all sectoral indices have opened on a weak note with realty and consumer durables indices leading the losses.
After scaling new all-time highs, the benchmark Indian indices have opened the day with some losses. The Sensex today is down by around 47 points (0.2%), while the NSE-Nifty is down by about 17 points (0.2%). Mid and small cap stocks are also trading in the red with the BSE Mid Cap and BSE Small Cap indices down by around 0.03% and 0.16% respectively. The rupee is currently trading at Rs 60.40 to the US dollar.
Public sector bank stocks have opened the day in the red with Indian Bank, Central Bank of India, Punjab National Bank (PNB) and United Bank of India leading the losses. As per a leading financial daily, India's largest public sector bank State Bank of India (SBI) has stated that it expects 14-15% growth in credit off-take during the current financial year 2014-15 (FY15). The bank believes that while the economic indicators are improving, it will take some time for growth to accelerate. There has not been significant pick up in big projects. It may take up to three to four quarters for improvement in large projects. However, the bank expects retail lending to grow fast.
Barring National Mineral Development Corporation (NMDC) and Coal India Ltd (CIL), most major mining stocks have opened the day on a weak note with Gujarat NRE Coke and MOIL Ltd leading the losses. India's power sector has been facing acute coal shortages. As a result, the government had put forth a request to state-run coal mining giant CIL to significantly cut down sale of coal through e-auctions. As per a leading financial daily, CIL has accepted the government's request to scale down e-auction sales by more than half. During the financial year 2013-14 (FY14), the company had sold a total of 58 million tonnes of coal through e-auctions. In order to make coal available to the power sector, CIL has agreed to limit its e-auction sales to 25 million tonnes during the current financial year 2014-15 (FY15).