All major Asian stock markets have opened the day on a weak note following the decline of US stock market. Stock markets in Hong Kong (down 1.8%), Indonesia (down 0.8%) and China (down 0.8%) are leading the losses. The Indian share markets have also opened the day on a negative note. Barring healthcare and auto indices, most sectoral indices have opened on a weak note with FMCG and IT indices leading the losses.
Steel stocks have mainly opened the day in the red with Jindal Steel and Maharashtra Seamless leading the losses. As per leading financial daily, leading private sector steel player Tata Steel is planning to start work on its ferro-alloys plant at Gopalpur in south Odisha by March 2015. It must be noted that Tata Steel is the anchor tenant for the Gopalpur Special Economic Zone (SEZ) spread on an area of 2,952 acres. Earlier, it had announced to set up a 50,000 tonne per annum ferrochrome plant and one 400,000 tonne per annum rebar mill over an area of 400 acres of land there. The company had committed an investment of Rs 10 bn on these two projects. While the ferro-alloys plant will cost Rs 2-2.5 bn, the rebar mill will entail an investment of Rs 7.5-8 bn. In a bid to draw investors to the SEZ, Tata Steel is planning to have roadshows in South East Asia region.
IT sector stocks have mainly opened the day on a weak note with Info Edge, Infosys and NIIT Ltd leading the losses. As per a leading financial daily, India's leading IT services exporters Infosys and Wipro expect Internet of Things (IOT) and adoption of cloud computing to open up new revenue streams and revive their telecom business. It must be noted that IOT refers to interconnection between different objects and devices through the internet. It is worth noting that these developments come at a time when telecom companies are cutting down spending on traditional IT outsourcing contracts.