Asian stock markets have opened the day on a firm note. Stock markets in Japan (up 2.1%), Hong Kong (up 2%), Indonesia (up 0.5%), and China (up 0.4%) are leading the gains. The Indian stock markets have opened the day on a firm note. Stocks in the Oil & Gas and technology space are leading the gains.
The BSE-Sensex is trading higher by 141 points (0.7%) and the NSE-Nifty is higher by around 31 points (0.6%). BSE Midcap and BSE Small cap stocks are trading in the green as well, with the BSE Mid Cap and BSE Small Cap indices up by 0.2% and 0.3% respectively. The rupee is trading at 47.53 to the US dollar.
Auto stocks have opened the day on a mixed note with Ashok Leyland and Tata Motors in the green while Hero MotoCorp is trading in the red. India's largest 4-wheeler, Maruti Suzuki will resume production from 19th September. However, its problems with striking workers still remain unresolved. The company also said that due to the strike at its plants at Gurgaon and Manesar combined with a designated holiday on account of Vishwakarma day, the plant will remain closed for two days (Friday and Saturday). With regards to the ongoing problems at Manesar plant, the company is persistent in demanding that the workers should sign the Good Conduct Bond. The recent spate of troubles with the workers has led to a fall in production for the company.
Steel stocks have opened the day on a firm note with Tata Steel and Jindal South-West Steel (JSW Steel) in the green. State owned Steel Authority of India Ltd (SAIL) is set to raise its production from its iron ore mines to about 38 m tonnes. The move is in tandem with the company's Rs 700 bn mega expansion plan wherein it will increase hot metal capacity from 13 m tonnes to 23 m tonnes by 2012-13. In order to meet the higher raw material requirement, SAIL is following a three-pronged strategy to double its iron ore output from its captive mines at an expected investment of about Rs 103 bn. First, the company will increase production from existing mines through de-bottlenecking and deploying high capacity heavy earth moving equipment. Second, the company will enhance the capacity of existing mines at Kiriburu, Meghahatuburu, Bolani and Gua. SAIL also plans to develop new mines at Chiria and Taldih.