Barring Japan (down 0.4%) and Singapore (down 0.1%), major Asian stock markets have opened the day on a firm note with the markets in China (up 0.8%) and Hong Kong (up 0.4%) leading the gains. The Indian share markets have also opened the day on a positive note. The sectoral indices are trading mixed with healthcare and FMCG indices leading the gains. However, the auto and metal indices are trading weak.
Auto stocks have opened the day on a mixed note with Tata Motors and Eicher Motor leading the losses. However, Escorts and Tube Investments are trading firm. As per a leading financial daily, auto maker Mahindra & Mahindra is making it foray in the 110cc scooter segment with Gutso. The company will sell the new scooter through its two-wheeler dealerships as well as through its select tractors and auto dealers. It is worth noting that Gusto is the first scooter to be fully made in-house. It has taken almost two years for development. The new vehicle will be launched on 29th September 2014. The rollout will happen in a phased manner. Phase 1 will see the launch in northern and western regions, which contribute almost 65% of the overall scooter sales.
Steel sector stocks have mainly opened the day on a weak note with Bhushan Steel and Jindal Steel leading the losses. As per a leading financial daily, public sector steel major Steel Authority of India Ltd (SAIL) is finalizing a plan to nearly double steelmaking capacity to 50 million tonnes per annum by 2025. This will entail an investment of Rs 1.5 trillion. For the planned capacity expansion, the company has secured a 30-year mining lease from union mines ministry for iron ore at Dhul Khera village, in Rajasthan's Bhilwara district. It must be noted that SAIL is in the final stages of its current expansion plan to raise hot metal capacity to 23 million tonnes per annum by investing Rs 700 billion. It has already spent Rs 554.44 billion till August 2014 on it.