Asian stock markets have opened the day on a mixed note. Stock markets in Indonesia (up 0.5%), Hong Kong (up 0.2%) and China (up 0.2%) are trading in the green while South Korea (down 1.3%) and Japan (down 0.2%) is trading in the red. The Indian Stock Markets
have opened the day on a flat note with a negative bias. Stocks in the Energy and Metals space are leading the losses while stocks in FMCG and Consumer durables are trading in the green.
The BSE-Sensex is trading marginally lower by 15 points (0.1%) and the NSE-Nifty is marginally lower by around 7 points (0.1%). The midcap and small cap stocks are trading in the green, with the BSE Mid Capand BSE Small Cap indices up by 0.1% and 0.3% respectively. The rupee is trading at 46.14 to the US dollar.
Oil & Gas stocks have opened the day on a weak note with Reliance Industries and Bharat Petroleum Corporation Ltd in the red while Oil and Natural Gas Corporation (ONGC) in the green. Gas Authority of India Ltd (GAIL) is planning to increase sourcing of Liquefied Natural Gas (LNG). It is also looking to acquire assets linked to LNG through mergers and acquisitions globally. This aggressiveness in GAIL's plan is due to the growing demand of gas with supply constraints. The company has stated that it is looking at Asia, Africa and North America to expand its footprint internationally in gas value chain. The company also plans to consolidate its operations in exploration and production (E&P) activities. In addition the company also plans to venture into gas-based power and unconventional energy sources like shale gas.
Steel stocks have opened the day on a weak note with Tata Steel and Sterlite in the red while JSW Steel in the green. In a written communication to the Rajya Sabha, Steel Minister Beni Prasad Sharma has said that state-owned Steel Authority of India Ltd's (SAIL) expansion and modernisation drive which would raise its crude steel production capacity from 12.8 m tonnes per annum (mtpa) to 21.4 mtpa and hot metal production capacity from 13.8 mtpa to 23.5 mtpa would be progressive completed by 2012-13. The expansion drive, entailing an investment of about Rs 618.8 bn would not only raise production capacity but also address important issues such as elimination of technological obsolescence, installing energy-efficient and environment-friendly technologies, etc. Apart from this, SAIL has also earmarked a corpus of Rs 102.6 bn to develop existing iron ore mines.