Asian stock markets have opened the day on a mixed note with stock markets in Hong Kong (down 0.3%) and Singapore (down 0.2%) leading the losses. However, markets in Indonesia (up 0.7%) and Japan (up 0.1%) are trading firm. The Indian share markets have opened the day on a positive note. Barring the realty index, all sectoral indices have opened on a firm note with oil & gas and FMCG indices leading the gains.
Engineering stocks have mainly opened the day in the green with Punj Lloyd, Manugraph India and Suzlon Energy leading the gains. India's power sector has been adversely impacted by the prolonged slowdown in the macroeconomy as well as delays in clearances. However, with the new government in power at the Centre, the situation is expected to change. As per a leading financial daily, thermal power projects worth about 3,000-4,000 MW are expected to be bid out by various states during the current financial year 2014-15 (FY15). As such, engineering giant Larsen & Toubro (L&T) is expecting to bag at least one or two large power plant contracts. It is worth noting that last week L&T bagged an EPC order worth Rs 51 bn from the Madhya Pradesh state utility to set up a 1,320-mw super critical thermal power plant.
IT sector stocks have opened the day on a firm note with NIIT Ltd, CMC Ltd and Tata Consultancy Services (TCS) leading the gains. As per a leading financial daily, India's third largest IT services exporter Wipro is aiming to promote entrepreneurship within the organisation through a programme called Horizon Investment Programme. Under this programme, the central strategic office of Wipro invests in ideas that are suggested by business units or verticals in a venture capital (VC)-like fashion. This programme is headed by the chief strategy officer Rishad Premji, son of Azim Premji. It is said that the company has so far invested around US$ 1- 2 million each in 50 ideas. These investments are mainly in areas that the company believes would be future growth drivers. While these ideas may not be revenues-accretive currently, they have the potential to do so in a time frame of four to six quarters.