Asian stock markets have opened yet another day with significant losses. Stock markets in Japan (down 1.6%), Singapore (down 1.2%), Indonesia (down 1.1%), South Korea (down 0.8%), Honk Kong (down 0.5%), and China (down 0.4%) are leading the losses. The Indian stock market have opened the day on a weak note. Capital goods, metal and consumer durables stocks are leading the losses. However, Power
stocks are trading firm.
is trading lower by around 116 points (0.7%), the NSE-Nifty is down by around 34 points (0.7%). BSE-Midcap and BSE-Small cap stocks have opened on a flat note with BSE Mid Cap index down by 0.1%. However, BSE Small Cap index is marginally up by 0.1%. The rupee is trading at 49.30 to the US dollar.
Oil & Gas Stocks have opened the day on a weak note with Reliance Industries and Hindustan Petroleum Corporation Limited (HPCL) in the red. Hindustan Petroleum Corporation (HPCL) has announced plans to incur a capital expenditure of Rs 450 bn in next 5 to 6 years. Around Rs 320 bn will be used to expand existing refineries and set up of new refineries. Another Rs 120 bn will be used for exploration & production (E&P) and other activities. The Chairman and Managing Director of HPCL said that they are planning to increase the refining capacity to 42 m tones in next 5 to 6 years. The current capacity stands at 14.8 m tones and comes from the Mumbai and Vizag refineries.
Auto stocks have opened the day on a mixed note with Ashok Leyland and Maruti Suzuki trading firm. However, Bajaj Auto and Hero Motocorp are facing selling pressure. Despite disruption of production at its strike-affected Manesar plant, Maruti Suzuki has been able to increase production of its best-selling Swift hatchback. The auto major rolled out 700 units from its Manesar and Gurgaon plant on Saturday, as against 670 a day earlier. At this level of production, Maruti can roll out over 17,500 units of Swift per month. The rise in production of the Swift model was attributable to recruitment of more workers at the Manesar plant and commencement of production of the car at Gurgaon. Over the last few days Maruti has moved 90 engineers from its Gurgaon plant to Manesar. It has also recruited over 800 workers to augment production. Currently, over 1,300 workers are working at the two Manesar plants. Maruti plans to commence production of the A-Star hatchback and SX4 sedan at Manesar soon.