Most Asian stock markets have opened the day on a firm note. Stock markets in Indonesia (up 0.5%), South Korea (up 0.4%) and Japan (up 0.1%) are leading the gains while Hong Kong (down 0.5%), and Singapore (down 0.4%) are leading the losses. The Indian stock markets have opened the day on a flat note. IT and consumer durable stocks are leading the gains. However, metal and realty stocks are trading weak.
The BSE-Sensex is trading marginally lower by around 2 points (0.01%), while the NSE-Nifty is down by around 3 points (0.05%). BSE-Midcap and BSE-Small cap stocks have opened on a firm note with BSE Mid Cap and BSE Small Cap indices up by 0.2% and 0.1% respectively. The rupee is trading at 49.15 to the US dollar.
Oil & Gas Stocks have opened the day on a flat note with Cairn India and Gail India in the green while Reliance Industries and Hindustan Petroleum Corporation Ltd (HPCL) in the red. As per a leading financial daily, Oil & Natural Gas Corporation (ONGC) has decided to give its consent to Vedanta Resources for taking over Cairn India, a transaction worth US$ 9 billion. However, it is subjective to both Vedanta Resources and Cairn India signing a legal pact to make royalty payments cost recoverable and cess payments worth Rs 2,500 per ton on the all important Rajasthan oilfields. In a recent meeting, the board of ONGC has agreed to waive its pre-emption rights. As per the company official, the no-objection certificate (NOC) will be issued when Cairn and Vedanta sign legal documents on royalty and cess. It is important to note here that Cairn India's 97 % owners (including parent Cairn Energy) and new management Vedanta have already accepted the conditions set by the government.
FMCG Stocks have opened the day on a firm note with Marico and ITC in the green while Hindustan Unilever is trading in the red. ITC's Paperboards and Specialty Papers Division (ITC PSPD) is waiting for the Andhra Pradesh Government for allotment of the land to proceed with the Rs 30 bn capacity expansion plan. This capex plan is supposed to be done adjacent to its existing pulp and paper mills complex in Bhadrachalam. ITC has gone through a huge social forestry initiative which will help securing the raw material required for the expansion. This expansion is expected to increase the capacity to one million tonnes a year. The Chief Executive of ITC PSPD said that the company was awaiting allotment of 1,000 acres of land from the Andhra Pradesh government. After the land will be allotted ITC will go on to take other necessary approvals from the concerned regulators. The company is also keen about acquisition but it has no plans as of now.