Most major Asian stock markets have opened the day on a weak note with the markets in Indonesia (down 1.4%) and Japan (down 0.9%) leading the losses. The Indian share markets have also opened the day on a weak note. Barring the IT index, all sectoral indices are trading in the red with consumer durables and realty indices leading the losses.
Auto sector stocks have opened the day on a weak note with Maharashtra Scooters and Tube Investments leading the losses. After two years of sluggishness, car makers are gearing up for the upcoming festive season in October. It is worth noting that for the first time in a decade, festivals like the Durga Puja, Idu'l Zuha, Dusshera, Diwali, Dhanteras, Bhai Duj, Chhat and many regional festivities have fallen in the same month. Car makers are expecting that this will give a big boost to car sales during the month. Customers will witness higher discounts and dole out of goodies during the festival period as well as launches of feature-rich new cars with appealing designs. It must be noted that 2.39 lakh passenger vehicles were sold in October 2013.
Public sector bank stocks have opened the day on a weak note with Bank of Maharashtra, Indian Bank and Vijaya Bank leading the losses. As per a leading financial daily, leading public sector lender State Bank of India (SBI) has stated that it has exposure of about Rs 41 bn to companies that will be impacted by the Supreme Court order cancelling 214 coal blocks mining licences. However, SBI Chairperson Arundhati Bhattacharya has pointed out that loans extended to the power plants would not become non-performing assets (NPA) as the government had indicated that it would make some arrangement to provide coal linkages despite cancellation of mines. Nonetheless, the margins of the power plants are likely to be impacted.